EUR/JPY Taps Important Level Once Again

Good morning traders,

Remember the EUR/JPY retesting confluence of support setup that we were trading? Well we’re back!

This is a prime example of what actually normally happens once a trend line breaks. We see sideways consolidation followed by price simply moving back in the direction of the original trend:

EUR/JPY Daily:

Click on chart to see a larger view.

But it’s the marked horizontal level that I really wanted to highlight this morning. By looking for confluence of support and backing up trend lines with solid horizontal levels, you’re giving yourself that backstop. There is no subjectivity in a straight line and as you can see here, the level has been touched again basically to the pip.

So long as price is above the higher time frame zone that is also on that chart, these sorts of pullbacks should be looked at as possible buying opportunities.

Best of probabilities to you.

Dane Williams – Vantage FX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the forex trading account of the reader. We always aim for maximum accuracy and timeliness, and Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

Source: Vantage FX Blog