as we can see here on the EUR/JPY
chart that the pair is in a downward trend, and has been creating lower and lower lows within the daily timeframe
chart. now the pair has paused its momentum and has started to move sideways with a single triangle pattern
which has created support and resistance
levels. due to the nature of this pattern formation, we should wait to see how the market approaches the top resistance level
. if price doesn't break out and a double top
is formed then we will be looking for a sell opportunity to the downside areas. however, is the market strongly breaks through the resistance line then we will be looking for a further retest to confirm structure and then look for a buy to the upside. so for now, we are going to be patient and wait for market to set its structure and show us patterns which will help us in our decision to place our trade.