EUR/JPY Back for Another Test of Resistance

April 26, 2017

We’re back after the ANZAC Day break in Australia and I wanted to immediately pick up basically where we left off with the Euro.

Flicking through my Euro pair watchlist, it’s EUR/JPY that immediately caught my eye this morning, after testing higher time frame trend line resistance at the same time as EUR/USD tests horizontal resistance.

Take a look at the level that EUR/JPY is back testing on the daily chart:

EUR/JPY Daily:
160426_eurjpy_daily
Click on chart to see a larger view.

We have spoken about this EUR/JPY confluence of resistance before, and already had the trend line drawn in from that previous profitable short trade.

The French election gap up and rally obviously changed things quick-smart, but as we keep finding time after time, even after these big fundamental shifts, higher time frame technical levels are so often still respected.

Where the Euro goes from here all depends on how the market views which way the second round of French election voting will go. As a trader, the key for us isn’t to try to predict the result as such. It’s to put ourselves in the best possible position to take advantage of a major market repricing if the predictions are wrong.

With EUR rallying across the forex board, it’s pretty obvious to see which direction the market thinks the result is going to go. Do you agree? Then how are you going to trade it?

Give @VantageFX a mention on Twitter and let us know your thoughts with a chart or two attached.

Dane Williams – @VantageFX

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