Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.
EURJPY is encountering buyers at a level I mentioned on Saturday.
It was actually a range of support between 117.80 and 118.30.
However, I was more interested in 117.80 as it’s closer to the 50% retracement of the rally that began on September 3.
You can see how 117.80 also supported EURJPY between the 5th and 22nd of August before flipping to resistance later that month.
So far, buyers are doing their part to support the pair at 117.80.
But that doesn’t mean it will continue.
Furthermore, we don’t have a price action signal to suggest that now is the right time to buy the EURJPY.
It’s going to take a bullish pin bar at 117.80 to pique my interest.
A break above Wednesday’s high would also be appealing.
Notice how EURJPY has carved lower highs since coming off channel resistance on the 19th.
A break above Wednesday’s high of 118.19 would be the first in this series of lower highs.
That doesn’t mean a break above 118.19 will send EURJPY higher, but it would be indicative of an increase in demand.
For those who want to play this more conservatively, waiting for a close above channel resistance would be ideal.
And if you’re bearish EURJPY, a daily close below 117.80 would signal weakness and expose the 116.00 region.
In other words, the future direction of the pair hinges on 117.80.
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