Daily Price Action
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EURJPY Teeters on the Edge of Key Support

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The EURJPY is at risk of pulling back following what appears to be a break of support that extends from the April low. If we connect the July and September highs, it begins to look more like a rising wedge than anything else.

If the pair does lose ground from here, there’s one area I will be keeping a close eye on. The 128.40 handle played a critical role as support throughout July and August.

It’s also the ascending channel top that extends from the December 2016 high.

EURJPY daily chart with ascending channel

That intersection at 128.40 will be my target should we get a favorable short setup.

Keep in mind that non-farm payroll is out in just a few minutes at 8:30 am EST. As such, I’m going to wait for the dust to settle following the event before considering an entry.

I also want to wait until next week. Taking a position on a Friday carries more risk due to the chance of a weekend gap. Remember that Monday is also a U.S. holiday so trading activity may be lighter than usual.

An alternative approach to selling a retest of former wedge support is to wait for a daily close (5 pm EST) below Thursday’s low at 131.84. This area served as resistance in mid-September and later attracted bids on the 25th and 26th of last month.

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

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EURJPY rising wedge pattern on the daily time frame

Leave a Comment:

13 comments
Farai says

Thank you Justin. I am a beginner and am learning every day

Reply
    Justin Bennett says

    You’re welcome. Glad to hear that.

    Reply
David Mitchell says

My chart is no where near a breakout of the lower wedge line. Makes you wonder how many hundred or even thousand variables there are with all different brokers and data providers which begs the question is there any validity to price action trendline breakouts if everyone is seeing something different?

Reply
    Justin Bennett says

    Are you sure you’re drawing from the April low and not the June low?

    If so and your level is still way off, you may want to have a chat with your broker. I have access to four different brokers, and they all show the same thing.

    Reply
Paulo says

Hi,
Price is above a reversal TL
Price is below a TL
there is another one ( 131.84 )
Well done
regards
Paulo

Reply
Travis says

“Heavy Price Action”

Reply
    Justin Bennett says

    You got it. Buyers have been resilient, but cracks are forming.

    Reply
steve says

Great analysis Justin. My only question would be TL. My rule is that a TL to be proven must have 3 touches. Prior to that its speculative – would you agree. That being said the most recent TL at the last two tops is speculative for now.

Reply
    Justin Bennett says

    Thanks, Steve. I too use a three touch rule, but I include the origin. In that case, the trend line above fits the criteria. What really matters is whether or not the market respects the level as new resistance.

    Reply
Peter promise Igbokwe says

Learning a lit from you boss…God blessings

Reply
    Justin Bennett says

    That’s great to hear, Peter.

    Reply
Anthony says

Thanks Justin for your excellent analysis, I have been stalking this for a while now, and I’m almost running out of patient.

Reply
howard says

Nice intersect also of line below consolidation of last 9 days at about 132.00. I like your figure of below 131.84 as a trigger. Thanks Justin.

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