Monday, December 04, 2017

A Triple Top And A RSI Divergence Signal For A Possible EUR/JPY Drop

134.50 is a key level for EUR/JPY as the pair is testing it for a third time forming a triple top on the W1 time frame.

At the same time the RSI indicator has formed three highs that correspond to the triple top of the price, each high lower than the previous, all connected by a trend line.

I think that if the pair succeeds in breaking out above the resistance the next target should be in the zone around 136.00   - 136.50.

If it fails to break out above 134.50 we could see a drop to 124.50.

It is also important to watch for a breakout above the trend line of the RSI divergence, as that would be a signal for a renewal of the upward trend.