From a daily perspective EUR/JPY is currently stuck on an ascending channel after a strong push to the upside and the price has tested and rejected multiple times the 127 area. On top of that, it has never retraced to the neckline of the previous W formation pattern. Therefore i expect the price to breakout from the ascending channel and fall all the way down around the 125 level where there is a confluence of previous resistance, neckline of the W pattern and the 38.2 level of the fibonacci taken on the impulse. Hopefully I will be able to catch some good pips with a 1:5 risk to reward ratio.
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