EUR/JPY Key Points
- Higher time frame, EUR/JPY ascendng channel has broken out and retested.
- Price traded sideways at the new resistance zone before finally tanking.
- Now sitting just below previous swing low support.
EUR/JPY Technical Analysis
Remember last week's EUR/JPY ascending channel breakout and retest?
Well after trading sideways at the support turned resistance, price finally rejected hard and smashed through previous swing low support.
Take a look at the updated hourly chart below:
"The idea here is to now see if that short term support zone turns to resistance and if so, we can use it as confirmation to trade to the short side."
Boom, that's pretty much what we got!
With price now hitting an initial target area of the swing low that formed the start of the ascending channel, it's worth reevaluating your positions.
Best of probabilities to you.
Dane.
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