Dear traders,
The EUR/JPY has reached a decisive support zone. The break or bounce moment will offer traders an interesting spot for trade setups.
This article reviews the potential breakouts, wave patterns, and chart patterns.
TheΒ EUR/JPY is testing the resistance trend lines and 21 ema zone:Β
A bullish break is expected to develop as follows:
A bearish pullback could see two variations:
On the 4 hour chart, price action has reached the last support zone if the current pullback is a wave 4 (blue). A deeper bearish breakout (yellow circle) indicates a wave 1-2 pattern instead. A full break below the bottom (red circle) invalidates the bullish outlook.
However, if price action manages to:Β
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter.
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