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.
Last week I talked about a potential breakout opportunity on EURJPY.
The pair has now spent more than two months consolidating within this 240 pip range between 120.90 and 123.30.
When I wrote about this last week I was favoring a downside break.
Here’s what I wrote:
In the case of EURJPY, I like the idea of shorting the pair following a daily close below range support at 120.90.
The reason for this is two-fold.
On the one hand, the EURJPY has been trending lower since February of last year. As such, I favor selling the pair until the trend changes.
And on the other, EURJPY appears to have failed to rally off of last week’s low. You can even see how Friday’s candle has engulfed the previous day’s range.
Although we aren’t there yet, you can see how EURJPY is closing the week right at range support at 120.90.
All in all, the pair looks primed for a move lower next week.
However, I have to stress the importance of waiting for the break to occur.
As long as EURJPY is hovering around this 120.90 level, the pair is going to continue to attract buyers.
A close below range support next week would expose the 119 region. Keep in mind that area could be as low as 118.30.
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