EURJPY – Point & Figure

EURJPY –

At the start of the month, we witnessed a sizeable shift in sentiment towards the Euro, hiking up demand and resulting in a strong bullish rally. Since then, price action has behaved mostly sideways, but there are signs of bullish activity stemming from this initial move. In today’s Chart of The Day, we’re looking at a potential return to May 2015 levels using point and figure analysis.

We currently see a double top formation at the 126.00 level as EURJPY remains propped up by a bullish support line. This particular support line isn’t new. It originated earlier in the year but has now shifted higher in-line with the emerging trend.

While longer-term support appears steady at 122.00, with increased demand, we may see the pair targeting the somewhat elusive 128.00 area that EURJPY has struggled to close above of late. The next significant resistance level looks to be 132.60 should this trend continue.

Finally, these are not the only upside targets worth considering. If we carry out a vertical column count from the low of 115.00, an interesting figure emerges. Following a quick calculation of the proceeding column’s range, it results in an upside target of 140.50. This level was an exact high for EURJPY on the point and figure chart back in May 2015. Despite being quite a distance from this price, it’s not unimaginable to think it could journey in this direction given the trend’s current trajectory and volatility in the marketplace. Only time will tell.

Note: Click on charts to enlarge.

 

By Adam Taylor CTEe

.@adamt_trading

Sources: Go Markets, Meta Trader 5, TradingView, Bloomberg

Disclaimer: The articles are from GO Markets analysts,  based on their independent analysis or personal experiences. Views or opinions or trading styles expressed are of their own;  should not be taken as either representative of or shared by GO Markets.  Advice (if any),  are of a ‘general’ nature and not based on your personal objectives, financial situation or needs.  You should therefore consider how appropriate the advice (if any) is to your objectives, financial situation and needs, before acting on the advice.  If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.

Next: Overnight on Wall Street: Wednesday 16 December 2020
Previous: Overnight on Wall Street: Tuesday 15 December 2020