EUR/JPY forming a nice reversal pattern, prepare to buy

The price is forming a nice reversal pattern and we expect to see a bounce soon. The plan is to buy above 128.22 support (Fibonacci extension, bullish divergence, bullish price action) for a push up to at least 129.51 resistance (Fibonacci retracement, horizontal overlap resistance).

Stochastic (34,5,3) is seeing strong support above 6% and also displays bullish divergence vs price signaling that a bounce is impending.

Correlation analysis: We're seeing bounces both on AUD/JPY and EUR/JPY.

Buy above 128.22. Stop loss is at 127.91. Take profit is at 129.51.


The material has been provided by InstaForex Company -