EUR/JPY May Be Heading For 134.50

EUR/JPY could not break out above 136.50 – 136.60 and started depreciating. A signal for that were the two shooting star bars and the spinning top bar that had formed at the rally high.

What is more, the end of the European session is close and so is the closing of the D1 bar , so we should follow closely how it will close and what bar it will form. For the moment the D1 bearish bar is equal in height to the bullish bar from 4^th January 2018. Should the current D1 bar close in the same manner then the depreciation will continue, I think, and the first support would be at 134.50.

If the pair breaks out below that support it is possible to keep falling to 133.50 – 133.00.