Good morning, traders! Today we will analyze the situation in EUR/JPY since many of you may be interested, mainly in the momentum/trend traders.
🔸The price has been in a solid upward movement for more than a year. We can draw a bullish channel by joining the ascending highs and lows, and we see that recently the lower trend line was tested. There was an attempted break, but the price could not consolidate below and instead generated a strong rejection and a subsequent bullish momentum.
🔸Throughout June, there was an extensive corrective process with no clear direction. A clear reversal of the trend.
🔸We consider that this instance is about to end, and if a bullish break is generated, there are high chances that we will see a movement towards the Weekly Resistance zone.
🔸The Weekly target we are looking for is the supply zone that led to the previous downtrend in this pair. At the moment it was touched, it was a level that generated a bearish movement that lasted almost two years. That is why we consider that if having or opening bullish positions in this pair, it is a good place to close the trades or minimally reduce the risk or take some profit.
🔸The price has been in a solid upward movement for more than a year. We can draw a bullish channel by joining the ascending highs and lows, and we see that recently the lower trend line was tested. There was an attempted break, but the price could not consolidate below and instead generated a strong rejection and a subsequent bullish momentum.
🔸Throughout June, there was an extensive corrective process with no clear direction. A clear reversal of the trend.
🔸We consider that this instance is about to end, and if a bullish break is generated, there are high chances that we will see a movement towards the Weekly Resistance zone.
🔸The Weekly target we are looking for is the supply zone that led to the previous downtrend in this pair. At the moment it was touched, it was a level that generated a bearish movement that lasted almost two years. That is why we consider that if having or opening bullish positions in this pair, it is a good place to close the trades or minimally reduce the risk or take some profit.