In my EURJPY analysis, posted few days ago, I mentioned two possible trading scenarios (bullish Aggressive C harmonics scenarios and bearish H&S scenario).
135.5 was the key zone and indeed we've started the trading week with a re-test of this support zone. Following some consolidation on the top of the 135.5 support zone, the rally finally came and the price crossed about the hourly SMA lines and reached the broken uptrend line that should have acted as resistance - exactly what it did.
At this point I sent to the Elite Zone a bullish setup on USDJPY as I expected EURJPY which was the force behind EURUSD (inverse correlation to USDJPY) to decline (at least to have a quick pullback. The USDJPY trade generated nice 40 pips as USDJPY recovered from its decline that came after a Cypher completion (another Elite Zone winner this week).
Now EURJPY is just on the 200 SMA line and the 50 SMA line. This zone (136) along with the proven 135.5 support zone will be the ones to focus on next week. The same goes for the important 1.1 zone in EURUSD that I'll cover in next week's newsletter.
Very technical movements today that created nice winners on EURJPY, USDJPY and EURUSD. Enjoy your weekend everyone