From Investor to Scalper is a cycle of analysis in which we take one financial instrument and the analysis includes a detailed look at the value from the monthly/weekly chart to the H1/M15.
As a result of increases in EURJPY, which have been in force since July 2016, as early as in October last year pair defeated very important technical resistance around 127.40 level. Over the next few weeks, this zone was tested from above (as a support) and its rejection opened the way for further increases. Looking at the screen below, we notice that although the market has not reached any further resistance, this week there was a strong supply reaction.
Due to the dynamic decline last week, the price reached the local upward trend, where today the first demand reaction has already appeared.
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Considering that during the decreases there was no bigger upward correction, we could expect some rebound in the near future. If the actual tested zone is currently stopping sellers, we would expect a re-test of defeated yesterday level 134.10.