EUR/JPY staircases down from its Halloween peak as it unfolds in a short-term downtrend during November. The odds favor an extension lower given the technical analysis theory that “the trend is your friend”.
EUR/JPY Daily Chart 
The next downside target is at the 158.11 September 30 swing low. A break below the 159.90low of the day would provide confirmation. Alternatively, traders might look at a lower timeframe chart such as the 1-hour for a pullback – perhaps a three-wave ABC – to provide a lower risk entry-point. The Relative Strength Index (RSI) momentum indicator is flirting with the oversold zone below 30. If it closes below 30 the pair will be considered oversold and short holders are advised not to add to their positions. A deeper sell-off could even take EUR/JPY down to 154.00 – 155.00 August-September lows. More By This Author:EUR/CHF Price Prediction: Falling Lower After Break Out From Triangle Pattern GBP/CAD Price Prediction: Pierces Below Confirmation Level For Rising Wedge GBP/JPY Gains A Lift After UK Consumer Price Data And Fall In Safe-Haven Flows
