EURJPY has recently broken out to the upside of the ascending triangle contained by the trade lines below. After this resumption of the bullish trend, the market started to retrace offering a new opportunity to reenter.Considering the trend is already established and its to the upside and that this breakout comes after a considerable period of consolidation, the fallow up move should be a strong one. I would consider going long at the current market price level or a bit closer to the upper triangle line. In this scenario a conservative take profit level would be the height of the triangle placed from the point of breakout - the green rectangle area on the chart. The stop loss would be just below the upper triangle line and the most recent swing consolidation area - the blue rectangle area.
In the opposite case that the market breaks the lower triangle line(brown) this would signify a false breakout to the upside and that the market should move strongly to the downside.
Happy new year everyone!
In the opposite case that the market breaks the lower triangle line(brown) this would signify a false breakout to the upside and that the market should move strongly to the downside.
Happy new year everyone!
