EUR/JPY just busted out of a triangle consolidation pattern on the 4-hour time frame!
Are more traders waiting to hop in on a pullback?
Check out these potential near-term correction levels:
EUR/JPY 4-hour Forex Chart Faster with TradingView
Global uncertainty and conflicting central bank biases have kept EUR/JPY stuck in a holding pattern for a couple of months already.
A slight pickup in risk-taking over the past few days brought enough bullish momentum for the pair to break above its symmetrical triangle top.
The rally appears to be stalling, though, so quick retest of the broken resistance may be in order.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the euro and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/JPY could dip to the nearby 38.2% Fib to gather more upside momentum on its breakout if euro bulls are eager to charge again. A larger correction could reach the 50% level closer to the pivot point (183.45) and dynamic support at the moving averages.
The 61.8% level, which lines up with the former triangle resistance, could be the line in the sand for a correction. Look out for long red candlesticks closing below this region, as these could suggest that bears are putting up a strong fight, possibly dragging the pair to the bearish targets at S1 (182.65) then S2 (181.07).
Should any of the Fibs be enough to keep losses in check, EUR/JPY could gain traction on its uptrend and climb back to the swing high at 184.64 or extend its rally to R1 (185.04) then R2 (185.84).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art zooms in on EUR/JPY’s triangle breakout. But as any pro will tell you, even the cleanest trend-following setup can fall apart if the trader doesn’t stay disciplined when price starts testing the level.
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Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
