The EURJPY has been in a sustained downtrend since 2018, and looks set for another possible move to the downside after rejecting a key level of 119 a couple of times this month. In this video, Tamar Mehr discusses a potential short trade she is stalking off of a technical cluster of resistance. Welcome to Rockfort Markets, market commentary. My name is Tamame.
Looking at the EUR/JPY and this is the monthly chart. We can see we are in a downtrend clear series of lower highs and lower lows, moving averages 10, 20, and 50 all in the correct order for a downtrend pull back into the sell zone, that area between the 10 and the 20 moving averages and we are moving away. We can see with touched here the 10 moving average a couple of times which means the lower timeframe might not be as a clear trend as the monthly.
The overall picture is to the downside, we can see that quite nicely here on the weekly chart. However, the daily is a bit messier but what I like about the daily is there a couple of times we rejected this area around the 119 currently we're pushing lower and potential the next level of support and resistance is around the 116 and a half-fish around this area of this week's over here. Going down into the 4 hours and I want to mark this level over here that we can see a lot of touches in the past so let's mark at this level in and around this area around the 117.9.
We can also see on the 4 hours now we started a new push lower and we are overextended, meaning there is a distance between the price action sits right now and they're moving averages. I also like the fact that we broke this previous low as it shows a lot of selling pressure at the moment so I'm looking for a pullback into this level and a potential continuation of this move.
Let's add another element. This is the Fibonacci retracement, so from the high into the low and what we can see is that at this level of a here is clustering quite closely with a 61.8% retracement. So there's a couple of elements of technical elements clustering here at the same point so I'd like to see the market pulling back into this level releasing some of the selling pressure a nice rejection of this level and a continuation of this overall down word move.