EUR/JPY Today’s analysis is about the instrument that we previously mentioned in our Trading Sniper videos. For the whole week, I was waiting for a proper buy signal, as the price was giving us some bullish hints. Patience was rewarded as Monday starts with an upswing and we are currently on the highest levels since the 14th of June. Let me describe the situation in a greater detail:
Our positive view is supported with the fact that the price broke the upper line of the flag (orange) and went higher. In addition to that, we broke the horizontal resistance on the 129.4 and later used that as a support. Buyers started Monday on the front foot as the price is aiming higher and today’s candle is making higher highs and lows. The next target for this movement is on the 131 so we do have an occasion for the 100 pips upswing. That is just the first step. If we believe in the flag and the upswing that was before, we should aim at least to the top of the flag. That gives us at least 740 pips.
The buy signal will be cancelled, when the price will break the yellow support, which as for now, is less likely to happen. Remember about the Mario Draghi today. His speeches always increase the volatility so we should get some bigger movements today as well.