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by Seth Parker on September 14th, 2018

EURJPY Analysis – huge double bottom formation

Second instrument with the JPY in it is the EURJPY, where we also do have a buy signal. Even stronger than on the USDJPY, as here, buyers are additionally supported by the fact, that EUR is on the rise after yesterday’s attractions from the ECB.

Buy story here started in May, when the price defended the orange support for the first time. In August, we did that again, which allowed to created a double bottom formation on the larger time frames. Correction, which started in February created a flag pattern (blue lines), which ended yesterday. The outcome of this formation was a bullish breakout, which in theory, brings us a proper buy signal.

eurjpy chart

Positive sentiment will be denied, when the price will come back and beat this week lows. That is currently less likely to happen and according to the price action, we should see a further upswing.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

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