The current technical pattern signals a possible correction of the EUR/JPY currency pair after significant growth. A classic reversal pattern, "Rectangle" (Н4 timeframe), has been formed in the trading instrument. At the moment, the EUR/JPY quotes are testing local support of 120.100. We recommend paying attention to this situation.
If the price fixes below 120.100, the EUR/JPY currency pair is expected to correct. The immediate goal for profit taking is the support level of 119.250. The movement is tending to the 61.8-78.6% correctional zone (118.750-118.000). Confirmations and market entry points should be looked for on lower timeframes. When tracking positions, we recommend using a trailing stop.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.Open Account