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.
Watch the video below for an update on the EURJPY price action I discussed on Sunday.
Don’t forget to scroll down for more commentary and an annotated chart.
The EURJPY is starting to look primed for a move higher.
The recent higher lows into channel resistance from the April 17 high suggest that buyers are willing to step in at higher prices.
I discussed this channel and the potential for a break higher at the end of Sunday’s Weekly Forex Forecast video.
Despite this week’s retest of the 119.70 resistance area, buyers aren’t backing down.
That doesn’t mean a move higher will happen, though.
Remember that nothing is certain, and even a close above resistance could turn out to be a false break.
Also, as long as the 119.70 area is intact, sellers are in control.
It’s important to respect the uncertainty and randomness that markets possess, especially when position sizing.
But I do think that a daily close above channel resistance near 119.70 would attract additional buying pressure.
It would also expose the 121.00 region.
That level is a little messy on the daily time frame, but a view of the weekly chart illustrates it well.
Break that 121.00 resistance area, and EURJPY could tag the July high at 123.40.
Just keep in mind that the big-picture view for EURJPY still looks relatively bearish.
That means a break higher could be nothing more than a relief rally.
It doesn’t mean you can’t buy EURJPY if buyers do clear channel resistance, but it is helpful to put the short-term price action in context.
Be sure to watch the video above for more details.
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