EURJPY possible Double Top in formation

20 de set. de 2020

Although we are still in a uptrend on the daily timeframe, it looks like it's coming to an end as the pair is forming a double bottom reversal pattern on the one hour chart. Although a reverse on the hourly chart is not to be taken as a indicator for a new longterm up trend. The RSI also formed hidden Divergence signalling that the bearish momentum is weakening and the the bulls have taken over. A second close of the RSI over the 50 value signals a buy confluence. A completion of the double bottom formation signals a buy trade although we can take advantage of it at formation with lower risk.

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Disclaimer: Analysis is subject to change.