My picks: Watching for EUR/JPY Break
Expertise: Fundamentals Combined With Technicals
Average Time Frame of Trades: 1 Day - 1 Week
EUR/JPY is consolidating within a large wedge formation, but also remains in an uptrend as evidenced by the pair's bounce from trendline support at 127 on May 18. I'm ultimately looking to buy a break above 135 to target 148.07 (61.8% fib of 169.51-113.62). Things will be a bit more complicated if we see a break below 127 since there is strong support looming at congestion near the psychologically important 125 mark.
That said, a break higher in EUR/JPY would be supportive of a break higher in EUR/CHF, which has spent the past month or so in a falling channel formation.
