EUR/JPY is correlated with EUR/USD so the same currently bullish view applies to both.
It has broken its downtrend channel on Daily, same situation as on EUR/USD.
We will take a look on the Daily and H4 timeframes to identify our long setups.
EUR/JPY Daily
The price has broken above its downtrend channel and is now testing the 103.40 resistance, while holding above both its SMAs - the 200 period SMA being recently broken.
A Reverse Head and Shoulders formation is nearing completion, as evidentiated on the chart.
Buy only after a retrace and consolidation lower but above the broken channel,with a stop loss inside the channel and a target at 107.15.
EUR/JPY H4
On H4, we are located inside a uptrend channel and the price has recently breached the 99.80-102.87 range and consolidated above it.
Buy above 103.40 (Daily resistance) with a stop loss slightly inside the range and a target at 105.00.
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