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Bull Flag Signals Scope For A Break Higher

EURJPY TECHS
  • RES 4: 144.00 Round number resistance
  • RES 3: 143.16 61.8% retracement of the Dec 15 - Jan 3 bear leg
  • RES 2: 142.86/94 High Jan 11 / High Dec 28 and key resistance
  • RES 1: 142.30 High Jan 25
  • PRICE: 141.18 @ 16:50 GMT Feb 1
  • SUP 1: 140.47/137.92 Low Jan 23 / Low Jan 19
  • SUP 2: 137.39 Low Jan 3 and the bear trigger
  • SUP 3: 137.03 Low Aug 29
  • SUP 4: 136.02 Low Aug 25

EURJPY is holding on to the bulk of its latest gains. Recent consolidation appears to be a bull flag formation. If correct, the pattern suggests scope for a break higher near-term. The 50-day EMA, at 141.73, has been pierced. A clear break of this average would strengthen a bullish condition and expose a key resistance at 142.86, the Jan 11 high. For bears, a reversal lower would refocus attention on the bear trigger at 137.39, Jan 3 low.

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