EURJPY breaks from the triangle, again…
This piece is about the EURJPY. The last time we mentioned this instrument on Friday and not surprisingly we were right about the direction. On the 22nd of February, we were optimistic about the future of this currency because of the symmetric triangle and the flag. This is precisely what we said:
“EURJPY is getting ready for a bigger upswing. The positive scenario here comes from the fact that the price broke out of the symmetric triangle pattern. What is more, we broke the horizontal resistance on the 125.45 and later, created a bullish flag (black lines). Flag is promoting a bullish breakout and further rise.”
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
The direction was right; the second formation was a bit different. Instead of the flag, EURJPY finally created a smaller triangle, actually a pennant (black lines). Pennant, as expected, resulted with the breakout of its upper line. The closest target are currently highs from February slightly below 126. Once those will be broken, we will receive a proper, mid-term buy signal. Chances for that are pretty nice.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis