Earlier, we shared a EURJPY short setup, which played out beautifully. After the target hit, EURJPY flipped bullish and is not continuing its direction.

- Market structure: EURJPY is in an uptrend right now, holding the 129.55 support level. This level has been tested twice. Right now, market is at the resistance level of 130.15. Once this resistance is broken, we will trade on the retest, along with looking at the other factors.

- Trendline: The trendline positioning has been verifying a bullish direction. Earlier, we had a breakout buy of a descending trendline. Candles opening and closing above the trendline break validated it. On the other hand, we have an ascending trendline, which was tested, by the market at the support level, hence confirming the second factor of a bullish confirmation.

- Bollinger Band: EURJPY has broken the middle band, retested it, and now moving towards the upper band. We anticipate the upper band being tested at the 130.90 resistance level, which confluences with the Bollinger band upper band. Bollinger band has given us a second confirmation with the break of the middle band, to trade a long position after the break of the resistance. The upper band will be taken as a profit target.

- EMA's: EMA 50 has been broken towards the upside and might be tested at the resistance turn support. We will wait for this confirmation once the resistance has been broken. EMA 200 stands at the resistance level of 130.95. We anticipate our potential targets up to that EMA 200 test.

- RSI/CCI: Nothing solid on the oscillators for confirmation except both of them are in the bullish region and have room towards the over-bought area.

EURJPY should is not a long position immediately. We need to wait for the break of the 130.15 resistance level and then trade the plan. Buying right now on the resistance is inherently risky for drawdowns. Its better to wait for a better opportunity once the resistance is breached and the traffic to the left hand side is clear to move up.

EURJPY clean traffic towards 130.90

Jul 26 2021

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