Here we have a nice simple setup on EUR/JPY. This pair has been quite messy over the last couple of weeks or so but it looks like the pair has picked up some momentum and finally found a direction. The bias for this pair is now to the upside for several reasons.
Price created a morning star formation at key support/50% fib level, and it has now also broken out of the descending daily channel and closed above key resistance of 137.500. This leads us to believe this pair is en route to the previous swing high/key resistance level of 141.000, which is our target 1. A break and close beyond that level would mean this pair will potentially fulfill its ABCD pattern, completing at target 2 (D1 fib extension) around the 145.000 level.
All comments appreciated.
Price created a morning star formation at key support/50% fib level, and it has now also broken out of the descending daily channel and closed above key resistance of 137.500. This leads us to believe this pair is en route to the previous swing high/key resistance level of 141.000, which is our target 1. A break and close beyond that level would mean this pair will potentially fulfill its ABCD pattern, completing at target 2 (D1 fib extension) around the 145.000 level.
All comments appreciated.