The EUR/JPY pair has rallied up to the 124.50 resistance, and is approaching the 125.00 psychological resistance level.
In daily charts, we notice that there is a downtrend channel from the high of September 1, at 127.00 to the last high of 125. 07 of November 9.
Yesterday this pair touched the top of this channel again, with a probability of a break of this bearish channel, with targets up to the resistance of 127.00. So if the pair breaks this channel and makes a pullback, we could take buy options up to 1.25 and 127.
On the other hand, as you can see in the chart, there is an uptrend channel if the pair fails to break the maximum of 124.50, there may be a reversal of correction of the pair to the 21-day EMA, support zone at 123.00 that coincides with the uptrend channel.
Our recommendation is that you buy above 124.50, if you fail to overcome you can sell only if the pair remains below 124.20 with targets at the 123.00 support. At this level, you can buy back the pair with targets up to 124.50.
Market sentiment is showing that there are 48% of investors who are buying this pair, which is likely to be a correction to support at 123.00.
Trading tip for EUR/JPY for November 26 - 30
with take profit at 125.00 and 127.00, stop loss below 124.20
Sell below 124.20, with take profit at 123.05 stop loss above 124.70
Buy if rebound at 123.05 (EMA 21 and trend line) with take profit 123.80 and 124.50, stop loss below 122.70
The material has been provided by InstaForex Company - www.instaforex.com