This chart represents the EUR/JPY currency pair on the daily timeframe. It highlights a Triple Bottom pattern, a bullish reversal formation that signals a potential upward trend after testing strong support multiple times.
1. Chart Pattern Analysis – Triple Bottom Formation
The Triple Bottom is a classic reversal pattern that forms after a downtrend and consists of three distinct lows at nearly the same level. This indicates that sellers attempted to push the price lower but failed three times, suggesting that buying pressure is increasing.
Bottom 1 (August 2024): The price reached a low near 150.344, forming the first support zone.
Bottom 2 (September 2024): The price dropped again to the same support level but bounced back, indicating strong demand.
Bottom 3 (March 2025): The price retested the support for the third time and rebounded, confirming the pattern.
💡 Key Takeaway: The repeated failure to break below the support level suggests that sellers are losing control, and buyers are preparing for a strong move up.
2. Support & Resistance Levels
Understanding support and resistance levels is crucial for identifying entry and exit points:
Support Level (150.344 - 150.125): This zone has acted as a strong demand area where price consistently bounced back.
Resistance Level (167.500 - 170.000): This is the neckline of the Triple Bottom pattern. A breakout above this level confirms the bullish trend.
If the price breaks above the resistance level, it will trigger buying momentum and open the doors for further upside.
3. Trading Strategy & Price Targets
✅ Entry Criteria
The ideal buy entry is after the price breaks above the resistance level (~167.500 - 170.000) with strong bullish momentum and increased volume.
Wait for a daily candle close above the resistance level to confirm the breakout.
🎯 Target Levels (Take Profit - TP)
TP1 (173.001) – First profit-taking level, as the price may encounter some resistance.
TP2 (179.266) – Final bullish target if the breakout holds strong.
📉 Stop Loss (Risk Management)
Stop Loss (SL): Below 150.125, just below the previous support level. This minimizes losses if the price fails to break out.
Risk-to-Reward Ratio: This setup offers a high risk-reward ratio, making it a favorable trade.
4. Market Psychology & Confirmation Signals
The Triple Bottom indicates a strong shift in market sentiment from bearish to bullish.
Confirmation signals to watch for:
✅ Bullish breakout above resistance
✅ Increase in trading volume
✅ Formation of bullish candlesticks (e.g., Engulfing, Marubozu, or Breakout Retest Confirmation)
5. Summary & Final Thoughts
🔹 The Triple Bottom pattern signals a strong reversal with clear upside potential.
🔹 The breakout above resistance (~167.500 - 170.000) will confirm a bullish trend.
🔹 Entry: Buy after breakout confirmation with volume support.
🔹 TP1: 173.001, TP2: 179.266
🔹 SL: Below 150.125 to protect capital.
🚀 Conclusion: This setup presents an excellent long opportunity with a well-defined risk-reward strategy. If the breakout holds, EUR/JPY could see a strong uptrend in the coming weeks.
1. Chart Pattern Analysis – Triple Bottom Formation
The Triple Bottom is a classic reversal pattern that forms after a downtrend and consists of three distinct lows at nearly the same level. This indicates that sellers attempted to push the price lower but failed three times, suggesting that buying pressure is increasing.
Bottom 1 (August 2024): The price reached a low near 150.344, forming the first support zone.
Bottom 2 (September 2024): The price dropped again to the same support level but bounced back, indicating strong demand.
Bottom 3 (March 2025): The price retested the support for the third time and rebounded, confirming the pattern.
💡 Key Takeaway: The repeated failure to break below the support level suggests that sellers are losing control, and buyers are preparing for a strong move up.
2. Support & Resistance Levels
Understanding support and resistance levels is crucial for identifying entry and exit points:
Support Level (150.344 - 150.125): This zone has acted as a strong demand area where price consistently bounced back.
Resistance Level (167.500 - 170.000): This is the neckline of the Triple Bottom pattern. A breakout above this level confirms the bullish trend.
If the price breaks above the resistance level, it will trigger buying momentum and open the doors for further upside.
3. Trading Strategy & Price Targets
✅ Entry Criteria
The ideal buy entry is after the price breaks above the resistance level (~167.500 - 170.000) with strong bullish momentum and increased volume.
Wait for a daily candle close above the resistance level to confirm the breakout.
🎯 Target Levels (Take Profit - TP)
TP1 (173.001) – First profit-taking level, as the price may encounter some resistance.
TP2 (179.266) – Final bullish target if the breakout holds strong.
📉 Stop Loss (Risk Management)
Stop Loss (SL): Below 150.125, just below the previous support level. This minimizes losses if the price fails to break out.
Risk-to-Reward Ratio: This setup offers a high risk-reward ratio, making it a favorable trade.
4. Market Psychology & Confirmation Signals
The Triple Bottom indicates a strong shift in market sentiment from bearish to bullish.
Confirmation signals to watch for:
✅ Bullish breakout above resistance
✅ Increase in trading volume
✅ Formation of bullish candlesticks (e.g., Engulfing, Marubozu, or Breakout Retest Confirmation)
5. Summary & Final Thoughts
🔹 The Triple Bottom pattern signals a strong reversal with clear upside potential.
🔹 The breakout above resistance (~167.500 - 170.000) will confirm a bullish trend.
🔹 Entry: Buy after breakout confirmation with volume support.
🔹 TP1: 173.001, TP2: 179.266
🔹 SL: Below 150.125 to protect capital.
🚀 Conclusion: This setup presents an excellent long opportunity with a well-defined risk-reward strategy. If the breakout holds, EUR/JPY could see a strong uptrend in the coming weeks.
💰FREE GOLD signals in Telegram:
t.me/goldmastertradezone
💰FREE GOLD Scalping signals Daily 5-6 Trades in Telegram: t.me/goldmastertradezone
t.me/goldmastertradezone
💰FREE GOLD Scalping signals Daily 5-6 Trades in Telegram: t.me/goldmastertradezone
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
💰FREE GOLD signals in Telegram:
t.me/goldmastertradezone
💰FREE GOLD Scalping signals Daily 5-6 Trades in Telegram: t.me/goldmastertradezone
t.me/goldmastertradezone
💰FREE GOLD Scalping signals Daily 5-6 Trades in Telegram: t.me/goldmastertradezone
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.