EURJPY Structural Support|1.414 Fib Extension|S/R Flip Retest

Evening Traders,

Today’s Analysis – EURJPY – broke structural resistance, consolidation above this level will likely put in a higher low.

Points to consider,
- Structural support confirmed (S/R flip retest)
- 1.414 Fibonacci Extension respected
- RSI above 50
- Stochastics in upper region
- Volume below average

EURJPY S/R flip has been confirmed with a retest of structural support, the immediate target now is local resistance.

The 1.414 Fibonacci Extension marked the local bottom in the trend, taking out these lows will be very bearish.

The RSI is above 50, showing strength in the market, whilst the stochastics is in the upper regions, an indication of momentum being shifted up.

Bull volume nodes need to however increase for sustained follow through, failure will lead to the probability of this being a bear trap.

Overall, in my opinion, EURJPY needs to maintain strength above structural support; the next target is local resistance, a long trade will be valid with defined risk.

What are your thoughts?

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And remember,

“If you have to win, if you have to be right, if you can’t lose or can’t be wrong, you will cause yourself to define and perceive categories of market information as painful.”
― Mark Douglas