FX Reversals EURJPY Breakout Update
- EURJPY Reverses Off R3 Resistance
- Breakout Signaled Under 138.83
- Range Support Found at 139.09
EURJPY 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
Suggested Reading: Trading Intraday Market Reversals
Like other Yen crosses the EURJPY has been trending lower this week on continued Yen strength. This has allowed traders to look for order entries with continued weakness on the pair. Price started today’s trading session by retracing against the trend and moving down after testing R3 range resistance. Price has continued to decline through today’s trading range of 51 pips, and is currently trading near the S4 line of support. A breakout below the S4 camarilla pivot at a price of 138.83, would indicate a move toward lower lows. Traders can use this as an opportunity to seek new entries on fresh momentum in the direction of the pairs primary trend.
In the event that price does not hold below the S4 breakout value, traders can begin looking for a counter trend reversal. This would be denoted by price moving back through the S3 range support value at 139.09. An even broader reversal would be signaled in the event price moves above the R4 pivot to a higher high at 139.86. In either scenario, day traders can look to conclude any trend based positions and adjust to the markets current directional bias.
Yesterday, traders were looking at another Yen based pair. The AUDJPY was trading near R3 range resistance and by the conclusion of yesterday’s U.S session trading, had broken to a higher high in a counter trend breakout. Since this point, the pair has declined as much as 98 pips from today’s daily high. To learn more about yesterday’s action, check out Wednesday’s FX Reversal article linked below.
Then, to practice setting up orders using Camarilla Pivots, register for a FREE Forex demo with FXCM. This way you can develop your day trading techniques while tracking the market in real time.
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---Written by Walker England, Trading Instructor
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.