EUR/JPY Key Points
- Ascending channel on the hourly chart.
- Price has broken down on the third test of support.
- Now retesting previous channel support as possible resistance.
EUR/JPY Technical Analysis
A clean and simple chart setup to end the week on the back of one of the Autochartist signals that I like to share on Twitter.
Remember, I share them as chart patterns like this with clear support/resistance lines are basically the starting point of your trading, no matter the exact system you use for entries and exits.
So just the one chart is all we need today:
If you do zoom out on your EUR/JPY chart and take a look at the daily, you can see that price is trending down.
This ascending channel on the hourly then can also be viewed as a flag continuation pattern and the breakout lower confirms this.
Price has now pulled back and the blue box I've drawn was on the first spot where we saw short term support form.
The idea here is to now see if that short term support zone turns to resistance and if so, we can use it as confirmation to trade to the short side.
Best of probabilities to you.
Dane.
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