US President Obama’s first State of Union Address ignited the Asian bourses but pushed the JPY lower in morning Asian session.
EURJPY opened at 126.20 before being stopped by the Pivot resistance R1 at 126.71. A head and shoulder pattern was formed to reverse the morning bullish tone. A break of the neckline was followed by a retest at point 1 (refer to 5 MTF chart).
On the 1 MTF, the retest was at point A. Then a harami candle occurred with a blue lag moving to cross the 85 level and BB Macd bounced off the zero line. A sell entry was initiated with a target of 126.2. At point B, EURJPY get support of the horizontal support 126.25 and the ascending diagonal support line. There was a divergence of BB Macd and price with blue lag crossing over the 15 level. An exit and reversed with a buy entry was made at 7:52. Target at 126.70 i.e. the last swing high and Pivot resistance R1.
