EURJPY has broken out to 124.600s: 1 Bullish 1 Bearish scenario
EURJPY has finally broken out to start the new year and may be a supportive area of 124.600 - 124.500.
124.361 is a monthly support
124.564/463 is a weekly support
Because there may a be a large gap, the pair may try to find support, then continue upwards to the area it broke out of: 125.750 - 126.000 area.
Two scenarios:
Scenario 1: It creates a lower high point after establishing support at 124.300-600s, heading back to 125.750 - 126.000 to continue downward to around 123.500
Scenario 2: It establishes support at 124.300s-600s to form a higher low point, continuing upwards to 128 and beyond (?).
Either way there will be a huge 150 gap, and if it takes awhile to close but is making a support, it may a good opportunity to buy. If it blasts through to close the gap, it may be a lower high point.
124.361 is a monthly support
124.564/463 is a weekly support
Because there may a be a large gap, the pair may try to find support, then continue upwards to the area it broke out of: 125.750 - 126.000 area.
Two scenarios:
Scenario 1: It creates a lower high point after establishing support at 124.300-600s, heading back to 125.750 - 126.000 to continue downward to around 123.500
Scenario 2: It establishes support at 124.300s-600s to form a higher low point, continuing upwards to 128 and beyond (?).
Either way there will be a huge 150 gap, and if it takes awhile to close but is making a support, it may a good opportunity to buy. If it blasts through to close the gap, it may be a lower high point.
Comment:
I used a currency site that usually is accurate that said EURJPY would open at 124.600s, but I guess not. Downside bias remains.