EUR/JPY – The Forex Trading Day Ahead & a Lesson

It has been a while since I posted on this pair, and it is a great one to trade as it generally has a large daily range.  Anyway, I noticed something glancing at the chart and thought I would post it.  The key thing  below is the “old trend” line.  If you draw a trend line, and the price breaks through it, keep it on your chart.  In the future the pair will often stop exactly near the trend line.

Check out the chart.  All the way up this trend line was respected when price fell and then bounced.  Then prices broke through the bottom of the trend line.  And when the pair bounced the trend line stopped the upward movement (circled) and pair moved back lower.  But here is the analysis and chart….

EUR/JPY – Aug 19

Yesterday the pair tested and respected an old upward sloping trend line (broken last week), quickly retreating.  In early trading today it has taken another run at the trend line and the highs for yesterday but has so far failed.  This makes a further slide probable.

Initial support is at 133.40 and 133.10.  A break below this level indicates a move for 132.50.  Further support is at 132.00.

A rise above 135 is less likely, but will initially target 135.50.  Target and resistance beyond is at 136.00.
~Cory Mitchell, CMT
Chief Market Strategist
Remember, failed breakouts are tradeable too!

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Source: Forexyard, EUR/JPY - 2 Hour

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