FX.co ★ jerome82 | EUR/JPY

Greetings, colleagues. An interesting structure has formed on the EUR/JPY market on the Daily timeframe. The price is squeezed into a narrowing triangle. The resistance lines are pressing hard from above. But the current daily candle closed with a strong green body. Buyers bought back the recent local decline of the last few days. The pair is trading at 185.414. Right above the current price there is a heavy descending resistance. The upper red trendline is restraining longs. Nearby there is a horizontal level at 185.975. It will not be possible to break this zone to the upside without a strong impulse. From below, bulls are being squeezed by a dynamic support line. Very close there is an intermediate level at 184.460. On the left side of the chart a strong volume shelf is visible. I am waiting for resolution in this structure. I will enter a long strictly after a confident breakout and consolidation above the triangle line and the 185.975 level. My target is much higher, around 186.995. I will hide the stop below the local volume shelf, roughly beyond the 184.460 mark. Shorts from here are still dangerous due to the strong buying. The bears’ defense is cracking. I expect a spike upward.