Here we have EURJPY hitting a very major Support line. How major?
And now we have finally come back to test it in 2016. Of course the EU Referendum is having a Major impact on this pair, hence its continuous decline in the coming months. But I believe that history will have an impact on this pair and it will climb its way back up to Oct...
Looking at the Monthly charts and where this Pair may go I have mapped a possible cypher pattern,
We have had the X to A and A to B legs form. Point C would be in line with previous area of ressiatance and Point D also falls in place with previous support
I say Possible as over the last week or so on several occasions I felt we were formign a double bottom only to push futher lower.
Yesterdays cande does have a longer wick which rejected a close lower so wills ee if we see a push higher.
Zeroing in on 122.50 to go long for a couple of hundred pips.
there is a lot of downside potential still but this where fundamentals comes into play for me.
top of the channel is the first TP from there we will see. This trade idea is not set in stone. But i know as much I am not a bear.
I have been watching the 4hr and Daily Time frames and felt that we had reached the bottom, the pair has pushed a bit further lower as we can see with the wick on this weeks candle
If the cande doesn't close outside of this box I feel we could see a reversal in the coming weeks
1. Price may continue going down to .382 (S3), if it breaks the S3 price should retrace off the channel and go into an uptrend.
2. Possible reversal at 122.417 & 122.216
4. Once the resistance level at 122.739 is broken it turns into support for the uptrend
5. Once uptrend starts price may retrace 2 times before reaching target.
6. Watch for the retracement and...