EUR/JPY is at breakout level
Updated
After a low has been established in Aug 05, EUR/JPY jumped sharply and it has been trading sideways within the range of 163.80 - 160.40 since Aug 15. The positive swap is nice during such periods.
Looking at stock market bullishness it's hard to believe that another major JPY rally will occur soon. Therefore, I am look at technical patterns for long entry. As the current price formation looks like a triangle, a break above the upper trendline would like trigger a rally towards 163.
If the rally is sustained, the next resistance levels are at 164, 165, 168. The rally might not be aggressive and it might last several months and as time passes the 2022-2024 rally trendline resistance will get higher and higher.
The ultimate target 168 might be reached near US Election time.
BUY at 162.125
SL at 160.500
TP at ~168 (targets to be updated with price action)
Looking at stock market bullishness it's hard to believe that another major JPY rally will occur soon. Therefore, I am look at technical patterns for long entry. As the current price formation looks like a triangle, a break above the upper trendline would like trigger a rally towards 163.
If the rally is sustained, the next resistance levels are at 164, 165, 168. The rally might not be aggressive and it might last several months and as time passes the 2022-2024 rally trendline resistance will get higher and higher.
The ultimate target 168 might be reached near US Election time.
BUY at 162.125
SL at 160.500
TP at ~168 (targets to be updated with price action)
Note
The setup remains unchanged. SL could be adjusted to the recent low at 160.150 instead of the initial 160.500.Trade active
The trade has been activated. The analysis remains unchanged, except for the SL that must be adjusted to 160. This is required since the pair made a new low before the was triggered.Trade closed: stop reached
The trade was closed reaching my stop. From here the pair might continue higher, as the pattern now looks like a completed correction, but I will not chase the market.
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