An engulfing pattern has developed on the EUR/JPY weekly chart.

With a Friday’s close above last week’s bearish candlestick body, the bullish reversal pattern provides strong visual reinforcement that the support is solid at this level.

From a Western technical perspective, the MACD oscillator below zero and printing higher lows is indicative of an dwindling downward momentum and may lead to price-indicator divergences.

EUR/JPY is staging a pullback

(Market News Provided by FXstreet)

By FXOpen