Chart Pattern Breakdown
The chart presents a 4-hour timeframe for EUR/JPY, revealing a strong technical setup with multiple key patterns in play. The price action has been forming a falling wedge, a bullish reversal pattern, followed by a breakout.
Falling Wedge Formation
A falling wedge pattern is characterized by a narrowing range, where both highs and lows trend downward but converge towards a breakout point. This setup indicates a loss of bearish momentum and the potential for a strong bullish move once the price breaks out.
The wedge began forming in early February, with price making lower highs and lower lows within the structure.
The support level remained stable, while the resistance trendline kept the price within a tightening range.
Around early March, the price successfully broke above the wedge resistance, confirming the bullish breakout.
Key Resistance & Support Levels
Resistance Level (Marked on the chart)
Around 163.500 - 164.000, where the price faced rejection multiple times.
The market tested this level but struggled to break through immediately, confirming its importance.
Support Level (Marked on the chart)
Around 158.500 - 159.000, acting as a strong demand zone.
This area provided multiple bounces before the final wedge breakout.
Current Price Action & Trading Setup
Breakout Confirmation: The price successfully broke the wedge and moved higher, testing the resistance zone.
Pullback & Retest: The market is currently pulling back, testing the recent breakout area. This could be an ideal entry point for a long trade.
Bullish Target: The next significant resistance is at 166.754, followed by an extended target at 166.938.
Trade Plan
✅ Long Entry: On a successful retest of support near 160.500 - 161.000
🎯 Target 1: 166.754
🎯 Target 2: 166.938
🔒 Sell Stop (Stop Loss): Below 158.918 to minimize risk
Conclusion
The EURJPY chart is showcasing a strong bullish setup with a confirmed falling wedge breakout. As long as price holds above the key support level, the market is likely to continue its bullish momentum towards the 166+ zone. Traders should watch for confirmations such as bullish candlestick patterns, volume surges, and trendline support before entering a long position.
🚀 Do you agree with this setup? Drop your thoughts in the comments! 🚀
The chart presents a 4-hour timeframe for EUR/JPY, revealing a strong technical setup with multiple key patterns in play. The price action has been forming a falling wedge, a bullish reversal pattern, followed by a breakout.
Falling Wedge Formation
A falling wedge pattern is characterized by a narrowing range, where both highs and lows trend downward but converge towards a breakout point. This setup indicates a loss of bearish momentum and the potential for a strong bullish move once the price breaks out.
The wedge began forming in early February, with price making lower highs and lower lows within the structure.
The support level remained stable, while the resistance trendline kept the price within a tightening range.
Around early March, the price successfully broke above the wedge resistance, confirming the bullish breakout.
Key Resistance & Support Levels
Resistance Level (Marked on the chart)
Around 163.500 - 164.000, where the price faced rejection multiple times.
The market tested this level but struggled to break through immediately, confirming its importance.
Support Level (Marked on the chart)
Around 158.500 - 159.000, acting as a strong demand zone.
This area provided multiple bounces before the final wedge breakout.
Current Price Action & Trading Setup
Breakout Confirmation: The price successfully broke the wedge and moved higher, testing the resistance zone.
Pullback & Retest: The market is currently pulling back, testing the recent breakout area. This could be an ideal entry point for a long trade.
Bullish Target: The next significant resistance is at 166.754, followed by an extended target at 166.938.
Trade Plan
✅ Long Entry: On a successful retest of support near 160.500 - 161.000
🎯 Target 1: 166.754
🎯 Target 2: 166.938
🔒 Sell Stop (Stop Loss): Below 158.918 to minimize risk
Conclusion
The EURJPY chart is showcasing a strong bullish setup with a confirmed falling wedge breakout. As long as price holds above the key support level, the market is likely to continue its bullish momentum towards the 166+ zone. Traders should watch for confirmations such as bullish candlestick patterns, volume surges, and trendline support before entering a long position.
🚀 Do you agree with this setup? Drop your thoughts in the comments! 🚀
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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.
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.