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EURJPY Finds Buyers at Channel Support

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We have been monitoring this ascending channel on EURJPY for some time now. In fact it was first mentioned in the June 7th commentary after the pair had just come into resistance at the 141.00 handle.

Now that the pair has had nearly three weeks to consolidate, it seems that the bulls may be ready to resume the uptrend that began on April 14th.

However given the uncertainty in Europe these days, I would prefer to see a daily close in the form of a bullish pin bar. In other words, see the day close at or aboveĀ current levels.

Such a close would not only give us a pin bar to work with, but would form an inside bar pin bar combination. This is perhaps my favorite pattern to trade when it forms at a key level in the direction of the prevailing trend.

Summary: Wait for a daily close before further consideration. A bullish pin bar would give us the opportunity to go long while a close below support would have us standing aside. Key resistance comes in at 141.00, 142.30 and 143.50.

EURJPY inside bar bullish pin bar

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