3 elements in EURJPY chart from May 2016 to 22 June 2018: A) up-equidistant channel B) down-equidistant channel and C) rising mid-extended trend line. Expect price action to test these elements in any order for support and resistance.
Out of 7 USDJPY forecasts compiled in the beginning of the year, 6 appear to be wrong. It is 11 months too early to tell but does not bode well. Price takes the path of least resistance – JPY charts suggest this ‘least resistance’ path is down.
There is certainly a technical resistance there. We need just a price-turning event. With BOJ monetary policy announced tomorrow and ECB this Thursday, there are two chances for a ‘mover and shaker’ to come out with a price turning story.
We look at 6 yen crosses specifically GBPJPY, AUDJPY, EURJPY, CADJPY, NZDJPY and USDJPY using a number of methods to determine the best choice to trade.
We use our original Tflow® forex strategy to trade EURJPY reversal; Tflow® is a buy-low, sell-high price action method that can trade high impact news.