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.”
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