In this 240 minutes chart of $EURJPY, the price is trading between 138.5 and 133.5
On October 9th, $EURJPY completed a pattern (blue) that sent this pair to re-test the 135 structure zone (now support).
Despite the sharp decline, 135 managed to hold $EURJPY above it and it bounced twice, with the support of the 4H 200 line.
The price is now just above 136 and it looks like it is heading towards pattern completion near 136.6 (red ).
136.6 is an interesting to monitor, as it may launch three different scenarios:
1. Continuation higher - In case of a breakout, $EURJPY may rally higher to complete pattern and near 138.5.
2. Pullback towards 135.5, 135.. minor setback before it will continue higher towards the Yellow completion
3. Aggressive C sell opportunity for the Pink pattern.
As it looks right now, JPY pairs look pretty strong so options 1 and 2 are definitely the ones I'd focus on.
135 is a strong that won't break easily. The daily lines also provide support for the price, adding to the chances we will see $EURJPY higher during the near future..
But.. there's Draghi and there's potential that can destroy EURUSD and pull down EURJPY along with it... so the scenario may also be relevant (perhaps this Thursday?)
Anyway, I tried to point out all the different scenarios I've found interesting. I hope that helps.
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