- December 23, 2022
- Posted by: Tradingshot Articles
- Category: Forex
The EURJPY pair hit this week the 1D MA200 (orange trend-line) and seems to be holding it as a Higher Lows Support within the Channel Up that started in April. We first looked into this Fibonacci Channel approach in September and gave us an excellent dump and pump trade:
At the moment, as long as this week’s low holds, we are expecting the Channel Up to make a Higher High within the 2.0 Channel Fibonacci and 4.5 horizontal (151.000 – 152.550) in the next 3 months. However, with the RSI on the 1W time-frame on Lower Highs while the price has been on Higher Highs, indicating a huge Bearish Divergence, we will turn bearish if the price breaks below this week’s low and target the 132.000. The 1W MA200 (red trend-line) is the long-term Support.