On November 30th, I wrote about a EURJPY bullish continuation pattern.
The pair was trading just below the 125.00 handle, and had carved an inverse head and shoulders on the daily chart.
Although they usually serve as bottoming patterns, inverse head and shoulders can also signal continuation.
That was the case for the EURJPY.
Twenty four hours after that November 30th commentary, EURJPY surged 150 pips and eventually closed at 125.89.
We also reviewed a trend line that extends from the 2014 high.
If we drill down to the daily time frame (below), you can see how EURJPY closed above that trend line on December 2nd.
Since then, the pair has coiled for its next move, which is happening today.
As I mentioned a few weeks ago, EURJPY needs to clear the 127.00 area to open the door to higher prices.
Remember that I use five-day Forex charts provided by Blueberry Markets.
That means each daily candle opens and closes at 5 pm EST.
One such higher price is 128.30.
That could be the next stop for the euro cross if buyers can clear 127.00.
That said, if the multi-year breakout above is any indication, the EURJPY could head much higher than 128.30 in 2021.
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