The EURJPY has a bearish setup

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The EURJPY has struggled to make much gains above the 130.00 level the last couple weeks despite “risk assets” like the US equity markets surging to all time highs. If you are bullish, take note that:
  1. We have been in an ascending wedge since mid 2019, and these are eventual reversal patterns by nature which should be note.
  2. The daily RSI is divergent.
  3. The false breakout above the 130.65 level two days ago may lead to a move below the 129.50 support.
  4. A break of the 129.00 level (trend line) would be a bearish reversal signaling the wedge breakdown.
  5. A 13yr trend line (from 2008) comes in just above the 130.00 level, so a turn lower in the coming weeks would be a major rejection for the pair in the event we see lower prices.

USDZAR is in a descending wedge

Many US Dollar pairs (especially against emerging market currencies) have similar setups, but the USDZAR is in a descending wedge which may be suggesting a bullish reversal soon. A break of the 14.4000 level could mean a move back to the 15.0000 level which is the long term descending trend line. we should also note, despite the rally to all time highs in US equities, the USDZAR has not broken the lows from the end of 2019, so if the pair does not break the 13.9300 level we could be creating a higher low longer term.

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