We see an ascending triangle taking shape on EURJPY pair. pair has failed to break the Resistance at 113.00-.30 At the same time it is making lower highs. At this time of writing this post EURJPY has pulled back up again from the Resistance and may test the ascending trendline.
We are looking at candle to close above the resistance line and then price to come back and test the resistance which by then will become the new support. This trade may or may not initiate this week and may very well continue into next week. We will be watching closely for any breakouts above the resistance line.
After the breakout is confirmed we will look to go long near 113.00-.30 area
Target is determined by the base of the triangle. Refer to the chart for a better idea. The base of the triangle is 250 pips and we project that after the breakout price can move to 115.50-.80 area
Price could failed to break on the upside and may continue down to break the green ascending line. the price breaks the ascending green line then we look to go short when price go up again to retest it.