EURJPY escapes symmetric triangle pattern
31 March 2023
The Risk ON mode present on the market throughout this week is apparent particularly in two areas. The first one is an impressive rally on stocks and the second one is the striking weakness of the Japanese Yen. Today, we will focus on the second aspect; and the pair of our choice is the EURJPY.
The reason we want to analyze the EURJPY is that today, the pair is triggering a very promising buy signal. The optimism stems from the fact that the EURJPY is currently breaking the upper line of the symmetric triangle pattern (black), which has been with us for almost a year! The price closing a day above the upper line of the triangle will be a proper buy signal. We are talking about a long-term situation here, as the chart where it is all happening is a daily one.
One problem with the further rise can be the fact that the recent one-week rally is really extended and there is a rising need for a bearish correction. It will happen sooner or later but, in my opinion, the buy signal here remains intact as this week’s rise shows a complete change in the global sentiment, in this case into a bullish one.