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EURJPY Retests Key Support at 131.84

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The EURJPY continues to consolidate above 131.84. It’s a level we discussed on October 6 when the pair was trading at 132.25.

At the time, sellers had broken what appeared to be a rising wedge pattern. The lower level began at the April low and was retested twice as support, once in August and again in September. See the link above for more.

That level broke down between the 5th and 6th of October. However, sellers failed to hold prices below it on a daily closing basis. The October 10 and 11 sessions both closed back above the suspected wedge support.

I actually entered short on the break of wedge support with a small position. I intended to add to the position if the pair closed below the 131.84 level. Unfortunately, that never materialized.

Although I managed to exit at just better than breakeven, the entry was premature. The last sentence I wrote in the October 6 commentary even pointed out that waiting for a close below 131.84 was the ideal approach.

Waiting for a daily close below 131.84 may be the ideal approach all things considered.

So where does that leave us?

Ironically, it leaves us right where we started ten days ago. As long as the EURJPY consolidates above the 131.84 handle, there isn’t much to do here.

A daily close (5 pm EST) below 131.84 would suggest that a pullback to the confluence of support at 128.40 is likely. Such a breakdown would have us watching for a sell signal on a retest of the level as new resistance.

Alternatively, a move above the current 2017 high at 134.40 would indicate that bullish momentum is alive and well.

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EURJPY key support area on the daily chart

Leave a Comment:

9 comments
Deos says

i rather see my breakdown on yesterday 15th october session, anyway, i placed a sell limit at 132.60 but seems like it might not be triggered

Reply
Fabrizio says

Hi Justin you are a genius! But if the price drops under 131.84 is there no risk of Mean reversion? A lot if greetings

Reply
    Justin Bennett says

    A pullback under 131.84 would be the mean reversion on a weekly and monthly closing basis.

    Reply
Abraham Olatubosun says

Hi Justin,
i am your hard follower and i really appreciate what you’ve been doing for us i have heard people saying i make 2000 pips a day this can be true but my concern is how much in term of monitory this pips translate to.

This bring me to my big question, is there any one making a true leaving trading Forex i need you to honestly answer this question because those i call mentors, are not really trading for leaving is either they are selling there strategies or training; this is how they make money.

for me am yet to see any one doing this as a profession for paying bills and leaving true life with it.

I will appreciate it very much if you can truly provide answers and possibly any prove to clear my doubt on this matter.

I can call you if you provide me your mobile number

Thank you Justin and hope to hear from you soonest

Reply
    Justin Bennett says

    Yes, of course. Though whether a trader decides to use profits to pay the bills is another matter entirely.

    Reply
Howard says

131.84 appears to be a strong level with many touches. Also It is near round # 132.00, and the 200 ema on 4 hour time frame is just below 132.

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Mary Matsapa says

Hi Justin, Thank you a million times for your block. I conquer with Abraham. Please I beg you to respond to Abraham’s issues because those are my questions too. Can you truly and honestly live on trading.

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jihad says

Hi justin
thanks for ur verry good analysis of the market it have been verry profitable.
Ii left the webinare because it disconnected many times,i will try to watch it again tonight.
I have two question plz:
Fot the Gbp/gpy i think it brakes the 148000 level after 3 times of reteting it(january 2016,may 2017,july 2017,and break and retest recently)whats ur analysis plz.
Second i want to ask about the 5 pm daily close on est.what will be the correct time for me (i live in lebanon Gmt +3)knowing that by midnight i will see the close of a daily candle and the start of the new daily candle of the day after.
10x

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Francis says

Plz do false breakout do occur even if market close at that level @ 5pm est?

Reply
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