EUR/JPY:- Ready For A Reversal
EURJPY:- Although this pair may have caught us out last week with a fake break out, it's not the end of the world as the daily candlestick indicates something significant about a trend direction. Now, as a predominantly medium term swing trader, the reversal formation that was completed on Friday 29th of June gave me great optimism for higher prices to be had on the currency pair. After breaking the resistance region of 128.500 that had previously been rejected on 4 separate occasions, we had a swift retest and continuation occur. The pair is now breaking an inner (and potentially the outer trendline), trading back above our daily moving averages. In addition to the directional bias crossing over to the upside, we could be in for a few hundred PIPs as the pair looks to recover recent losses.
Immediate upside boundaries to be aware of will be the 130.300 level, in which price accelerated from after the last ECB Interest Rate Decision, however, a 4-hour closure beyond 129.500 will leave a swift 80 PIP rally into the highs.