EURJPY is making an Inverse H&S formation for a bullish continuation
What is happening with EURJPY? We are seeing the MONTHLY November hold off the 120 support and a test of the long-term falling line resistance 126.50 followed in December. Does this mean that the EURJPY is heading higher in the case of a break above the key long-term resistance 126.50? Should you be building the buying position…If we look at the monthly chart we can see a huge reversal month happening in November but we need to see a continuation above 126.50 for an extension higher to 133.
The only thing that we can’t rule out is a violent price action around 126-126.50 zone we are testing now is not excluded and this is exactly the strong resistance for an extreme upside continuation. At the moment a break and confirmation above 126 will be a clear indicator that the upside extension is valid and dominant. We can see that clearly on the weekly chart below. A rejection at 126.50 will lead to consolidation.
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