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    EUR/JPY: head-and-shoulders pattern bodes bearish for euro-yen

       
    The EUR/JPY pair has formed a head-and-shoulders pattern on the 4-hour chart, and I see a strong possibility of more downside to come, as the pattern breaks lower.

    The exchange rate has moved down to the vicinity of the neck-line in the 133s. The lowest possible point of the neckline is probably at 133.10, and ideally I would want to see a break below that level, plus a 20 point margin – so 132.90 for confirmation of further downside.

    The minimum expectation for the move down from there would be at the 61.8% extension of the height of the pattern, which would give a target at 131.45 – however – the monthly pivot is situated just above at 131.53 and expected to provide robust support so I would make my target just above that level at 131.55 instead.
    EURJPY11

       
    The EUR/JPY pair has formed a head-and-shoulders pattern on the 4-hour chart, and I see a strong possibility of more downside to come, as the pattern breaks lower.

    The exchange rate has moved down to the vicinity of the neck-line in the 133s. The lowest possible point of the neckline is probably at 133.10, and ideally I would want to see a break below that level, plus a 20 point margin – so 132.90 for confirmation of further downside.

    The minimum expectation for the move down from there would be at the 61.8% extension of the height of the pattern, which would give a target at 131.45 – however – the monthly pivot is situated just above at 131.53 and expected to provide robust support so I would make my target just above that level at 131.55 instead.
    EURJPY11


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