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EURJPY: Keep These Key Levels on Your Radar Next Week

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Despite the choppy price action this week, the EURJPY has played out nicely for us since the October 10 breakout.

I first discussed the larger descending channel on September 19.

The idea was simple – daily close above the channel top was likely to signal the beginning of a relief rally from the EURJPY.

However, buyers never did close the pair above the 119.70 resistance area that I pointed out in the September 19 video.

That meant 119.70 was still serving as resistance.

After a 260 pip decline from 119.70, EURJPY bulls carved a higher low in early October, which hinted at a turn higher.

I discussed the potential for a rally in the October 12 Forex forecast video.

If you watched that video, you know I was waiting for a buying opportunity from 119.20/30.

Here’s the segment of the video where I point out why I liked 119.20/30.

As you can see, EURJPY bounced from 119.20/30 support on the 14th and 15th of October.

I also introduced this smaller ascending channel in that October 12 video.

Notice how the pair did reach that ascending channel top around 121.30 before pulling back this week.

So where to from here?

If the pair continues to respect this ascending channel, we could see EURJPY pullback further next week.

Key support on the way down includes 120.00 with a close below that exposing the 119.20/30 area I talked about a few weeks ago.

Any of those levels could trigger another push higher from EURJPY.

But don’t discount the possibility of a move back to channel support.

This price structure is having its way with the market, so we shouldn’t assume the pair can’t or won’t retest the channel floor.

Keep in mind too that EURJPY has been trending lower for nearly two years.

That means this latest rally may be nothing more than a corrective move ahead of the next leg lower.

A close below ascending channel support would help confirm that notion.

For now, though, it’s going to come down to what happens between 120.00 support and 121.00 resistance next week.

Want to watch the EURJPY video I just released in the member’s area?

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5 comments
Justin Bennett says

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Emmanuel says

Mr Justin , thanks for the analysis

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Nadzuah says

I really like your analysis
Sir…I learn so far sir thank you
For always send your analysis

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Nabil says

Thanks for analysis offered by you.
Please update us for EUR/USD , Do you think support at 1.1070 will hold for next week?

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Muhammad says

Dear Justin,thanks again for your guides,i always see that in your charts,there are 2 moving averages,could you please explain me what are those and how can i use them to understand the market trend in H1and H4?

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