On Friday, EUR/JPY fell the most in a year.
At the end of the day on Thursday, I pointed out (and here) the potential star pattern on the daily chart and that proved to be the warning sign. With a doji reversal like that you can never be totally sure but it played out like a textbook reversal today.
EUR/JPY daily
The thing is, a reversal like that with the bearish engulfing reversal can continue for a number of days. It’s painfully tough to sell EUR/JPY after a 250 pip fall but the technicals say it’s the right thing to do at the moment (or maybe on a pop in early trading next week).
