EURJPY (CROSS) Awaits Channel Or Trendline Breakout On Weekly TF

The CROSS (EURJPY) is currently confined in a descending channel on weekly timeframe that has been respected on numerous occasions and there also happens to be an ascending trendline that seems to be holding this pair. Have a look at the main chart of weekly timeframe to observe these two scenarios!

Now thats the technical picture which is suggesting the price could breakout anywhere be it upwards by breaking the channel or downwards by breaking the trendline. The fundamental picture is a tricky one to predict where this pair might trend but odds are slightly with the break to the downside, as the slowdown in EUROPE continues and the SAFEHAVEN yen demand will be there against the EUR!

So to trade this pair, its advisable to wait for the weekly candle to convincingly close outside the descending channel or beneath the trendline to confirm a breakout. The red line drawn on the main chart represent the nearby target levels if the price breakouts from either side!

This is just the current outlook on this pair and shall the trade criteria meet i will post the details in a new post. Hope you find this analysis useful, if you do please leave a LIKE and FOLLOW me if you want more future SWING trade analysis and alerts. cheers