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 140.00 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 140 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. If the market breaks the descending trendline, it 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. Price action is far beyond the EMA 50, therefore might not tap the EMA 50.

RSI is at 70. 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.

EURJPY break and retest

Sep 02 2022