EUR/JPY trades a falling channel, and we notice price action was rejected at channel top multiple times on Jan 29th, Feb 1st and 2nd.
- Pair unable to break channel top resistance, daily cloud also weighs on the upside, reinforces downside, currently at 130.73.
- We have evidenced formation of subsequent hanging man, gravestone Doji on Feb 4th and 5th trades.
- RSI has turned lower after peaking at 65 levels and Daily Stochs have also edged lower into neutral from overbought territory.
- Price action neatly converging with RSI and Stochs and momentum slowing on MACD support downside.
- Immediate resistance is seen at channel top by 131.85, while support is located at 129.80 levels.
Recommendation: Good to short rallies around 131 levels, SL: 131.90, TP: 130/129.80/128
