EUR/JPY 2 Week Trend Broken

Hourly Trend: Down

Resistance: 122.800

Support: 122.142

Euro/Yen Hourly

EUR/JPY Hourly Chart

Euro/Yen Hourly – Trend Changing

Euro/yen’s been trending for the past 2 weeks, but on today’s Tokyo session, the up trendline that was in control just broke.

Point 1: In this top, there was heavy supply by professional traders pointed out by the VSA indicator, as the market made a top on high volume, and went into a downtrend in even higher volumes. This happened when touching a weak congestion zone (selling zone) above, and all together, it’s a common reversal sign.

Point 2: On the reaction a few days later, the market reached 122.970 on low volume (volumes lower than average). With such selling behind, this is never a good sign, and the market then went on sideways.

Current time: As the ranges have been narrow for the last 2 sessions, this action can be better understood in a lower timeframe, such as 15 minutes.

Euro/Yen 15 Minutes

EUR/JPY 15 Minute Chart

Trading Range in Euro/Yen 15 minutes

In the 15 minutes, we can see that the market is in a trading range with a buying zone below and a selling zone above. The current rally is happening on high volumes, so it’s likely for the trend to continue until 122.8.

Suggested Strategy

Wait for prices to go to the resistance at 122.8, and look for further supply or low volume up bars in the hourly timeframe.

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