EURJPY is currently in a downtrend on the Daily and 4H, with price nearing the bottom of the daily consolidation zone.
We expect price to continue to S2 where it will either bounce back towards R2 or break lower towards S3.
Confirmation of this bounce is given by a break of the upper band of the trendline channel.
However, until then price is bearish.
It follows my other view of the chart with shoulder head pattern, but more simple way.
In june, after a long down trend started in 2014, we finally hit the major resistance / Support of 2012after and then we had a range for last 2 month which it may imply the start of a uptrend.
As you can see we also approach the long down trend resistance line (Orange).
Price dropped perfectly as expected and reached our profit target. We turn bullish above 114.11 major support (Fibonacci retracement, Fibonacci projection, horizontal support) for a push up to 116.19.
RSI (34) is on support
Stochastics (21,5,3) is also on support signalling a bounce is impending.
We have simple 5-wave count & flag breakout setup in EURJPY to hop on further upside movement. In the waves counted above wave (4) & (5) are drawn on assumption. If Eurjpy alters its path,we may need to re-count the waves.
Anyway look for flag breakout whichever side its & enter with proper stops.
Note : Though current candle is breaking out, ensure the...