RESULT ON MAY 13th (CLICK ON THE CHART TO ENLARGE IT)WINNER
The Evening Star that I highlighted with the yellow rectangle on May 11th dicated the EUR/JPY Bearish move for the next couple of days. Prices did a couple of false breakouts on 132.07 support level I mentioned but, after prices finally broke it, they did a nice 300-pip bearish move.
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INITIAL POST ON MAY 11th
(CLICK ON THE CHART TO ENLARGE IT)The Evening Star formation (depicted by the yellow rectangle) that we see today May 11th, at the important daily resistance level at 134.80 (see purple horizontal line) helps the bears.
But the main issue here is that the today´s strong bearish move hit exactly the Bearish Upper Trendline of a Symmetrical Triangle (see Bearish Purple Trendline) that has been broken up, which helps the bulls.
So what do we have for this week: An Evening Star that will push prices lower or; a throwback to a major Bearish Trendline, favouring the bulls? It´s hard to say. I believe that prices did a throwback but as price movementes are unpredictable, my points are:
LONG at the break up of today´s close at 132.38
SHORT at the break down of today´s low at 132.07
