Dear traders, the EUR/JPY is building a triangle pattern in a large uptrend. Price was able to break above the Wizz 7 target. This indicates that an uptrend continuation is likely.
1 hour chart
The EUR/JPY uptrend is clear when reviewing the moving averages (MAs): all of them are bullish aligned. Price has used the 21 ema zone (high & low) several times as a bouncing spot. The current triangle pattern could indicate another continuation. The wave count also suggests a potential wave 4 and wave 5 continuation (purple).
The main obstacle is the 120 round resistance level. Price will need to break that zone before a continuation towards Wizz 8 at 121 becomes feasible. The 176.4% Fib target at 120.25 could also cause a small pullback. A failure to break 120 could also indicate a larger pullback. But price remains in an uptrend as long as price stays above support (green box). A break below it invalidates the uptrend (red x).
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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This article was originally posted on FX Empire
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