EUR/JPY 1HR Short Trade - Fib Retracement Trendline Monthly Area

7 may 2019

After keeping an eye on this pair since the bearish movement I posted last week I want to keep an eye on how price was going to react to this very dynamic area of monthly support/resistance (124.000) and as we can see from this analysis we broke through with a very bearish engulfing candle, consolidated on this key area as the market could not decide what will happen next but was giving some clues with the price action. We could see when the buyers tried to take control on a number of occasions shortly after we would see huge engulfing candles taking all the progress made. We do have a 50% fib retracement in play right now and a new trendline which is being respected. I would like to see price come back up and tap the trendline one last time before taking an entry short just to confirm the overall bias of the market or a clear rejection of the monthly resistance area (124.000) I believe there is alot of downside potential here so I would keep an eye on this pair for any obvious price action to favour the bearish bias.