EURJPY → False breakthrough and the H&S reversal setup

31 May 2023

EURJPY after another resistance retest forms a false-break and on the local timeframe the currency pair draws a pair of H&S. What should we expect from the price?

On the 1H timeframe the price forms the pattern "Head & Shoulders", which is a precondition for the possible decline.
The price is falling and testing the support of 148.864, which is a strong zone. Most likely, a pullback to the base area of H&S will follow. I assume that after a technical pullback to 149.75 - 150.00, the price may continue its fall to 148.86, then to 147.800, as there is a huge pool of liquidity below these levels, which may be of interest to the market maker.



Strong resistance: 150.00, 150.500, channel resistance
Strong support: 148.864
I expect a rebound from the support for a possible retest of the base of the reversal pattern, from which I will further expect a decline.

Regards R. Linda!

31 May 2023

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