The EURJPY is resting on a level that could offer an opportunity in the days and weeks ahead.
I discussed this ascending channel in Saturday’s forecast video.
Friday’s session closed just above support at 120.30, and Monday’s session is bouncing from that same area.
If you watched Saturday’s video, you heard me say that there isn’t much to do here at the moment.
Here’s the EURJPY segment of that video:
However, today’s bounce from support is significant.
Why?
Because it tells us that this ascending channel is still a factor, which means a close below support could produce an opportunity.
Just keep in mind that there’s a chance the EURJPY could eventually see the top of the descending channel that extends from the February 2018 high.
That’s a possibility as long as the pair is within this ascending channel from the 2019 low.
But either way, I think the combination of the smaller ascending channel and larger descending one is one to keep an eye on.
A daily close below channel support (currently near 120.60) would expose lower levels, including 119.20/30.
Until that occurs, though, the short-term uptrend is intact, and the descending channel top just below 124.00 is exposed.
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