EUR/JPY: Confluence of Resistance
From today's Chart of the Day on the Vantage FX News Centre.
EUR/JPY is a Forex cross that I haven’t had on my watch list for a while now, but it’s time to bring it back for a look.
The daily chart has coiled into a triangle, with the most recent touch of trend line resistance coinciding with a horizontal SR zone that has been tested all over the place in the past.
These are the sorts of setups that you have to be careful fading because zooming into the hourly chart, you can see that buyers had huge momentum behind them to end the week. Now price has come into a higher time frame sell zone, I’ll be keeping an eye on the lower time frame charts for signs of momentum failing into any sort of short term confluence of resistance, but not going to pull the trigger at first sight.
EUR/JPY is a Forex cross that I haven’t had on my watch list for a while now, but it’s time to bring it back for a look.
The daily chart has coiled into a triangle, with the most recent touch of trend line resistance coinciding with a horizontal SR zone that has been tested all over the place in the past.
These are the sorts of setups that you have to be careful fading because zooming into the hourly chart, you can see that buyers had huge momentum behind them to end the week. Now price has come into a higher time frame sell zone, I’ll be keeping an eye on the lower time frame charts for signs of momentum failing into any sort of short term confluence of resistance, but not going to pull the trigger at first sight.
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