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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.
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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.