- January 28, 2022
- Posted by: Tradingshot Articles
- Category: Forex
EURJPY has been trading within a long-term Channel Down since the June 01 2021 market top. Since January 05 2022 it has seen a strong downfall within this wide pattern but this week could have found Support on this internal Higher Lows trend-line (dashed) as it turned sideways. The 1D MA50 (blue trend-line) is acting as the Resistance.
Last time we saw a similar Higher Lows structure within the long-term Channel Down, was on September 22 to October 06 2021 and that was the Low that initiated a massive rally towards the top of the Channel Down. As a result, as long as the Higher Lows trend-line holds and breaks above the 1D MA50, we should be expecting a similar rally towards the 0.786 Fibonacci retracement level as part of the Lower Highs pricing.