EURJPY is forming a bullish structure with the confluence of bullish trend overall on higher time frames. That being said, we are looking for EURJPY to move back towards the minor support level at the price of 138.25 from where we will be taking a long position. Market has already formed a higher high and higher low and has the potential to break through the resistance level of 138 and make another impulsive leg towards the bullish side. We will take profits at the resistance level.

The bullish pennant is being formed with trendlines acting as the support and resistance area. The market has broken out from the breakout buys of the trendline, which means that the bullish confirmation is being validated with the market forming a higher high and price action still needs to be validated.

The retracement area which is in confluence with the support level is at 61.8%. This confluence is our long position area and we will take a position from this level. Till then, we will continue to wait.

EMA 50 has just broken out. After the breakout buy, market may retrace back and tap the support level. During this move, market may fall below the EMA 50 but that does not denote the bearish trend as the structure on price action is turning bullish.

RSI is at 72. This is the bullish region but the window remains short as the over bought region is at 75. That being said, we have to wait for the market to tap back to the neutralized levels in order for the market to continue moving up.

Breakout and retest on EURJPY

Aug 30 2022