FX.co ★ EUR/JPY: upside reversal

EUR/JPY Ignored Downtrend Line!

The EUR/JPY pair tested and retested the 138.34 level and now it has managed to jump far above the downtrend line and above the 139.11 former high. The downtrend line represented an upside obstacle. Passing above it may signal further growth.

The 138.34 former high represented an upside obstacle as well. Jumping and stabilizing above it confirmed strong buyers and potential larger growth. Now, this level represents a downside obstacle.

EUR/JPY Trading Conclusion!

The aggressive breakout through the downtrend line and above 139.11 indicates strong upside pressure and a potential upside reversal. This was seen also as a buying opportunity. EUR/JPY could approach and reach new highs as long as it stays above 138.34 and above the broken downtrend line.