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EURJPY Breaks Key Support, Targets 129.30

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After consolidating between 131.80 and 134.40 for nearly two months, the EURJPY has finally broken down. It’s something we’ve been watching since the pair formed what appears to be a double top late last month.

With Wednesday’s close at 131.48, traders can begin watching for selling opportunities. As long as the level holds as resistance on a daily closing basis (5 pm EST), the 129.30/40 support area remains exposed.

Keep in mind, however, that yesterday’s break occurred during lighter than usual volume. Today’s U.S. holiday has triggered a liquidity drain this week that could affect the validity of breaks like this one.

As such, it may not be a bad idea to reduce position sizes or wait for additional confirmation such as a bearish rejection candle. As mentioned earlier, the next key support area comes in at 129.30/40.

Happy Thanksgiving to all those in the U.S.

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EURJPY double top reversal pattern

30 comments
Levis says

Nice one Justin, I’ve been monitoring for so long.

femi says

great spot Justin. Thanks for giving me much confidence with the style of trading. pls I want to know if the current candle closes above 131.80, can we still consider that the 129.30 is exposed?thanks

Tijani says

Wow! USDjpy hit target as you rightly analyzed. Now eurjpy is here. What else can I say? Justin you have made me great.

Albert says

Hello Justin,
Will the Monday’s long-tailed Pin Bar shows its colour?

    Hypolite Olua says

    Albert, I strongly believe that the Monday’s long tailed pin bar has not exhausted it’s reversal momentum. Am still bullish on this pair.

Muhammad Ijaz says

Thanks, Justin I hope accurate support is 131.37 so support still hold.

Prasanna says

134.43 resistance & 131.33 support on weekly chart is visible.

Roy says

Happy thanksgiving Justin. Enjoy time with family.

nhat says

very good

Thao says

I’m learned a lot from you, thanks Justin. Happy Thanksgiving to Justin and your family!

Doel Singidas says

I think EJ is going up and target 133.8, yesterday’s BO was a false break as shown at H4 candle, tweezer bottom at H1 candle. Now the price is at BO mode, i think it’s better to wait for the 1st retracement before triggering a long entry. Tnx

Jay says

your signal is wrong. now eurjpy is so mumbul high in bullish tren. why?

    Olufemi says

    You are wrong to have called it a signal. It is never a signal. Justin told us we should be careful on that break that happened on a low volume yesterday. He advised we should reduce our lot size if we would take the trade. Why call it a signal? I personally was on buy but his view was reasonably in line with technical.

      Darius says

      I do not like the idea that we do not know how to trade on lower volume. There are instruments which constantly have lower volumen and some still trade them. Like take Baltic stock market, evevrybody say it has low liquidity. But still they trade.
      Probably even US stocks have lower liquidity than currencies. But still lot of people trade them.

    Justin Bennett says

    I don’t offer ‘signals’. The decisions you make are yours and yours alone.

    As I mentioned in the post, this break occurred during low volume, so waiting for further confirmation isn’t a bad idea. That’s the reason I never sold this one and probably won’t.

Sagitario says

Again, the gurus are wrong 🙁
I should start my own advisory service….

    Justin Bennett says

    Sagitario, you wouldn’t be competing with me because I don’t run an advisory service, but feel free and good luck.

    As I mentioned above, the moment you realize that trading isn’t about right vs. wrong is when things will start to click. You can be wrong about the direction and lose nothing, which is exactly what happened to me with the EURJPY.

    You know why? Because there was no confirmation, which was a requirement due to the subpar volume last week. I even wrote that in my commentary above.

Mimi says

The negative comments is totally unjustified. Justin’s analysis is excellent and at least 80% of his trades are successful which is amazing in this industry. This is not a signal service, but a service we receive for free and helping us to learn how to trade.

    Raj says

    Very true mimi

    Roy says

    Well written Mimi. Justin does these daily set ups and write ups for free.

    The point being it is up to us, to take the trade. I can see why negative comments are here, because money is involved, hard earned money.

    This is not a signal service but a learning and education service.

    To be able to plot lines on a chart and actually see price action has improved my trading immensly, but at the end of the day, we alone must be accountable when placing a trade.

    Justin is like a shephard, who guides us and then we use what we have learned from him to trade in a simple way. Surely people can see that?

    He does not need to prove to anyone with a myfxbook or any other account. Traders the world over have improved by his guidance and teachings.

Doel says

Sir justin’s analysis is actually right, based on that moment, But after that moment or after the closed of the daily candle the situation is already different. As trader its about waiting for confirmation and timing. Thanks for sharing your idea.

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