Let’s take a look at a pair we like to trade – the EUR/JPY.
it seems we may have a hit a potential high point earlier this month and that will act as resistence to allow a nice, downward movement.
Watch the pair to test the trend line. If we see it close above the line and break away, look for it to potentially test the high from earlier this month.
In the longer term – after the upward move is complete, look for a longer downward trend with a potential target area of 103.000 and below.
If you trade this pair, then you know it can really move so be sure to apply your own analysis, use your money management and apply your stops.