EUR/JPY Retesting Confluence of Support. A Catalyst for new Highs?

Good afternoon traders,

As EUR/JPY continues higher, lets take another look at this highly popular forex cross:

EUR/JPY Daily:

Click on chart to see a larger view.

The daily chart shows price clearly respecting bullish trend line support and on its way up, after consolidating sideways for a bit, broke out through swing high resistance.

From here, I’ve marked the touch where price pulled back to retest broken horizontal resistance as support (with added confluence of support where the horizontal and trend lines intersect), before moving higher again.

EUR/JPY 4 Hourly:

Click on chart to see a larger view.

Now zoom into an intraday chart and things get even more interesting.

You can see that price is once again pulling back to retest a confluence of support. The intraday horizontal level that I’ve marked as well as the trend line support level which you can see on the daily chart above.

Do you see this as a catalyst for new highs?

Best of probabilities to you!

Dane Williams – Vantage FX

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Source: Vantage FX Blog