A continuous downtrend pattern is prominently illustrated here on the #EURJPY currency pair, as defined by our Advanced Pro Charts, which provides a comprehensive analysis of market trends and price movements. This downtrend is characterized by a series of lower highs and lower lows, indicating sustained bearish sentiment among traders and investors.
The Parabolic Trend indicator further corroborates this downward trajectory, highlighting the momentum behind the price movements and suggesting that sellers are currently in control of the market dynamics.
Looking ahead, a pullback is anticipated in the coming days, with the price potentially retracing up to the Fair Value Gap, which is visually represented by the yellow area on the chart at the price level of 157.80. This Fair Value Gap serves as a critical zone where the market may find temporary support or resistance, depending on the prevailing market sentiment at that time.
Should the price reach this level and experience a rejection, it would signal a reinforcement of the downtrend, leading to a subsequent decline in price. In such a scenario, we can expect the price to target the 0.618% Fibonacci extension, a key technical level often used by traders to predict potential reversal points. This Fibonacci extension level is significant as it represents a common area where price action may stall or reverse, thus providing traders with essential information for making informed decisions in their trading strategies.
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Chris
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