Omicron Could Drive EURJPY To 125.000!

28 thg 12, 2021

Ascending channel on weekly TF broke, bullish flag and pole formation is currently developing at the moment. In a long run, this pair has been in an uptrend, however since the channel and psychological barrier of 130.000 broke, the price is likely to aim the next support that lies at 125.400!

TECHNICAL ANALYSIS

• Bullish pole and flag formation currently in play on W charts.
  
• The 130.000 psychological barrier broke with M candle closing below it. This signals the price is ready to head lower towards 125.000 support area.
  
• This SHORT move signals further consolidation in EURJPY (FLAG CONTINUATION)
  

FUNDAMENTAL ANALYSIS
*Omicron the main driver for this pair at the moment
*Anticipated rise in the cases globally after the festive season would make JPY safehaven demand rebound, thus sending EURJPY lower



HOW TO TRADE?
Trade could be executed at this moment with the following suggested details as the risk to reward ratio is favorable at the current price
ENTRY: 130.000 & ABOVE
STOP LOSS: AT SWING HIGH 133.750
TAKE PROFIT: NEAR SUPPORT 125.4000
RR: > 1:1


Cheers & Happy holidays