Let’s take a look at one of our favorite pair – the EUR/JPY.
EVen through the underlying longer term trend remains potentially bullish, it seems like we may have formed a potential short-term top and am now looking at a corrective down.
You can see we’re currently in a downward channel so look for a potential continuation of the downward movement.
Also, excluding the spike down, if you apply a Fibonacci we just hit the 23.6% Fibonacci level and am now heading potentially heading back down towards it.
Look at Fibonacci levels for more potential price projections.
Once the retracement has completed, look for a continuation of the move up.
Good luck with trading.