Direct from the desk of Dane Williams.
After EUR/JPY chopped through, but eventually held support, we saw that huge rally. Price action was unfortunately too choppy for me to be able to get a clean entry and ride the wave, but our attention was on EUR/USD, which did give us an entry.
But with price pulling back, I want to highlight the zone that price has come back to retest on the daily. It's the sort of short term resistance zone that I would look to be retested as support for an entry on an hourly chart, but this time on the daily.
EUR/JPY Daily:
To be honest, I'm not really sure how I should handle this zone. It's certainly significant enough to place a daily zone there, possibly to just be used as a higher time frame line in the sand type level to determine whether we should be looking for longs or shorts.
Let's just put it on our charts for now and we'll watch how price action plays out on the hourly chart this week. This one is primed for a follow up if we get some sort of intraday retest when it's determined price has broken or held this higher time frame zone.
Best of probabilities to you,
Dane.
FOREX BROKR | Hive Blog
Higher time frame market analysis.