theselfishtrader

EURJPY - Bullish setup in the works

Long
FX:EURJPY   Euro / Japanese Yen
After breaking to new lows price found resistance at previous support, which has confluence with the 50% Fibonacci level.

However, the trend did not continue, forming a higher low. Price has again come into this area of support formed by the higher low, forming a double bottom on the hourly chart (not shown).

A long trade here has two nice targets: the recent high at the 50% Fib and then the 61.8% Fib which has confluence with the 127% Fib level.

It could be the start of some consolidation, so caution is advised.