On November 30th, I wrote about a pending bullish breakout from EURJPY.
At the time, the pair was trading at 124.64.
Fast forward to today, and EURJPY is up 170 pips.
The pair has also broken above the 125 handle.
The market also appears to have closed the week above the trend line that extends from the 2014 high.
The trend line above is the same one I mentioned in my November 30th commentary.
If the pair did break that trend line on a weekly closing basis, expect much higher prices for the EURJPY.
However, buyers face a key test between 126.80 and 127.00.
That region has been critical resistance since March of last year.
It’s going to take a daily close (using New York close charts) to confirm the break above 127.00 and open the door to 128.30.
But even if the pair falls back below 126.00, it wouldn’t be the end for buyers.
The December 1st rally was more than just a 150 pip single session move.
That close confirmed the inverse head and shoulders continuation pattern that I mentioned to Daily Price Action members last week.
The measured objective of that structure is near 128.30, which tells me EURJPY could have at least another 180 pips of upside potential.
My gut tells me it goes even higher than that as we head into 2021.