Good morning traders, today we want to show you a bullish trade opportunity that is forming in the EUR/JPY pair.
🔸 As we can see, the price remained in a downtrend for more than two years, moving within a bearish channel.
🔸 Some months ago, this channel was broken to the upside along with the Resistance zone.
🔸 This gave us a great bullish indication, but generally, the price after generating strong zone breaks makes some kind of corrective movement.
🔸 That is what is happening now, which can best be seen on the Daily Chart.
🔸 In this chart we see that the corrective structure is throwing back to the broken Resistance zone (now Support zone).
🔸 We have drawn the trend line of the corrective movement together with the local Resistance Zone.
🔸 We are waiting for a breakout to the upside of that level to confirm the bullish view. The target of the move is the next resistance zone at 133,000.
🔸 As we can see, the price remained in a downtrend for more than two years, moving within a bearish channel.
🔸 Some months ago, this channel was broken to the upside along with the Resistance zone.
🔸 This gave us a great bullish indication, but generally, the price after generating strong zone breaks makes some kind of corrective movement.
🔸 That is what is happening now, which can best be seen on the Daily Chart.
🔸 In this chart we see that the corrective structure is throwing back to the broken Resistance zone (now Support zone).
🔸 We have drawn the trend line of the corrective movement together with the local Resistance Zone.
🔸 We are waiting for a breakout to the upside of that level to confirm the bullish view. The target of the move is the next resistance zone at 133,000.