EURJPY broke out of a higher timeframe downtrend last week.
Price also broke out of two strong resistance areas with the EUR strength we have seen for the past few weeks.
We can see two possible scenarios;
1.Price falls to retest the strong support/resistance (red line) and continues with strong bullish momentum
2.Price breaks back into the downtrend creating a "fake out" and bearish momentum forms with EUR pairs
Our bias for EURJPY is currently bullish as a result of the current strength in EUR pairs. To change this bias we would need to see price break back into the downtrend.
Price also broke out of two strong resistance areas with the EUR strength we have seen for the past few weeks.
We can see two possible scenarios;
1.Price falls to retest the strong support/resistance (red line) and continues with strong bullish momentum
2.Price breaks back into the downtrend creating a "fake out" and bearish momentum forms with EUR pairs
Our bias for EURJPY is currently bullish as a result of the current strength in EUR pairs. To change this bias we would need to see price break back into the downtrend.