yesterday’s analysis worked out well with the EUR/JPY breakout above 120 hitting the target at 121 easily. In fact, price action even extended towards 122. Now price is showing a divergence pattern and a retracement is likely.
The EUR/JPY breakout (green arrows) above the resistance (orange) worked out nicely. Price completed the chart pattern and made a quick move up to the Wizz 8 and 200% Fib target. Price even extended the gains towards the 223.6% Fib target. The divergence pattern is making a pullback likely (orange arrows) at the moment. But the uptrend can continue if price rebreaks above the 21 ema zone for a move towards Wizz 9.
The EUR/JPY breakout offered multiple entry options (green boxes) using the SWAT method. The setups worked out nicely as price managed to hit the Wizz target without problems. The divergence (purple lines) is indicating a pullback towards the 144 ema. But the trend is likely to continue if price action can bounce at the 144 ema and rebreak above the 21 ema zone.
The analysis has been done with SWAT method (simple wave analysis and trading).
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