FxWirePro: EUR/JPY tests channel support at 127.020 but downtrend remains intact – use bounces for fresh short build-ups

The pair took supports at channel base line at 127.020 to form a bottom on daily terms. It is breaking resistance at 129.667 levels also on weekly terms.

But this should not be deemed as trend reversal, so there may be spikes in short run but down trend in long term seems stronger, one can utilize these upswings for better shorting opportunities as the price pattern of this pair has formed a sloping channel in which rejections to break resistance at 131.090 levels seems unlikely at this stage.

Retrospectively, preceding bearish trend in medium term signifies shorting chances as it has slipped way below 21DMA on all time frames.

Most convincingly, volumes build ups have been mammoth along with price slumps confirms downtrend (you can see grey shaded areas on weekly charts).

Leading oscillating indicators are also converging in sync with prevailing price declines.

RSI has been directly proportionate with price line on all time frames, no divergence is observed), this convergence can be attributed as bearish continuation. Currently, weekly RSI trending near 35.3703 levels (while articulating) with downward convergence to the dipping prices.

The slow stochastic noises with %D line cross over below oversold zones on weekly (current %D line flashes at 17.4831).

This comparative trend analysis on daily and weekly time frames, there is a clear sign of bulls creating selling opportunities for bears as a result of overbought pressures So overall, EUR/JPY is steaming up with heaps of bearish indications by leading oscillators in addition.

Contemplating certain bearish swings and abrupt brief upswings also, we recommend buying calendar spread that takes care of certain yields regardless of swings.