EURJPY tests two key levels, could spell long direction
This is a pair I am currently watching after I exited the USDJPY pair. While I don't think it is optimal to enter into USDJPY anymore because of its rally, I do think the Japanese yen still demonstrates a fundamental weakness. US dollar strength continues to dominate as this week's PMI figure still points to economic expansion (even though it is slightly slower than expected).
More specifically onto the EURJPY pair, there are two levels that I am currently watching. This pair first hit the daily resistance level and held up. However, the strength of the selling will help us determine the strength of the resistance level. Moreover, we have a lower level that serves as a potential resistance turned support level. The two previous resistance points have turned to a potential support. Notice how price traded lower and touched that level, but it quickly pulled back. This signaled that there is still buying pressure. We will wait for a confirmation bar before taking any trade.
More specifically onto the EURJPY pair, there are two levels that I am currently watching. This pair first hit the daily resistance level and held up. However, the strength of the selling will help us determine the strength of the resistance level. Moreover, we have a lower level that serves as a potential resistance turned support level. The two previous resistance points have turned to a potential support. Notice how price traded lower and touched that level, but it quickly pulled back. This signaled that there is still buying pressure. We will wait for a confirmation bar before taking any trade.