This is an interesting pair because of the price action in the past year. We know EURJPY has been in a bullish trend and that trend seems to have been consolidating forever until recently where we saw a downtrend and what seems to be a quick recovery.
We're now at a critical support level and even though we broke through that level around the beginning of the year, it would seem foolish to believe we're now going in a downtrend.
That level at 132.16 doesn't seem to be a very strong resistance based on recent data. Buyers were rejected once and it was pierced recently. Looking further left, it did not held either in 2017.
However, it does seem that level is a very strong support. Based on the end of 2017, we can see several attempts to breakthrough and rejection followed. Now that we are back at this level would the trend continue?
I'd be tempted to believe so and assuming it is true, the risk of taking this trade would be relatively small.
We're now at a critical support level and even though we broke through that level around the beginning of the year, it would seem foolish to believe we're now going in a downtrend.
That level at 132.16 doesn't seem to be a very strong resistance based on recent data. Buyers were rejected once and it was pierced recently. Looking further left, it did not held either in 2017.
However, it does seem that level is a very strong support. Based on the end of 2017, we can see several attempts to breakthrough and rejection followed. Now that we are back at this level would the trend continue?
I'd be tempted to believe so and assuming it is true, the risk of taking this trade would be relatively small.