A Bearish Engulfing Bar (BEEB) has been printed on the daily chart of the EURJPY chart. Price in recent times has begun to come off what has been a long and sustained up-trend and as the daily chart below shows; price has now found a high and has started what looks like it may be rolling over. Recently we discussed EURJPY Makes False Break Pin Bar From Support | 21 Jan 14 in this blog that had formed making a false break of support. This pin bar did send price higher and into the over head near term resistance where the bears climbed in to roll price back over and back lower once again.
In-line with this rolling over, price has in the last daily session moved higher to test the over head resistance and collapsed lower when the bears came in to the create this bearish engulfing bar confirming that at this stage the clean and obvious up-trend that was in place is over for the time being.
The major problem for this engulfing bar to move lower is that it is sitting on a short term and weekly term support levels. The engulfing bar has a lower wick that is showing rejection that at the end of the session could indicate price found minor support from these support levels. If price can break these support levels there is a nice amount of space to break into for price to then freely move without moving into support or resistance. Before a major move happens however, it would not surprise to see price consolidate and trade sideways.
EURJPY Daily Chart
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