Good morning traders,
After blowing through double top resistance, EUR/JPY has continued higher on fundamentally driven Euro strength.
I don’t normally go as wide as the weekly chart, but higher time frame levels are the same no matter what time frame you view them on and this one is no different. Take a look at the weekly EUR/JPY chart below:
As you can see, the price of EUR/JPY has returned to quite the significant zone. Just take a look at all the markers that I’ve placed on the chart.
Literally years and years of touches on both sides of the line. Also significant is the fact that each of the breakouts have been swift. Look at the full candle bodies when the line has been broken. This means that it takes something to make the level snap.
Now zoom into the intraday chart and let’s take a look at the price action that we’re now seeing:
Price is respecting the level on an intraday basis too, but those higher highs mean that price is coiling for a possible break higher.
Just keep in mind that EUR/USD is breaking out of higher time frame resistance and momentum is strong.
Best of probabilities to you!
Dane Williams – @VantageFX
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Source: Vantage FX Blog