EURJPY is breaking the Pitchfork uptrend channelÂ
In this article, we are drawing Pitchfork channels on EURJPY
On the weekly EURJPY chart, we can see that the pair is breaking the downtrend channel and could extend into the 120 level. Now only a daily close above the 127 level could invalidate the downside extension.
Using Andrews Pitchfork tool hint: to plot Andrew’s Pitchfork on a chart, first, look for three consecutive big highs or lows at the asset’s price. These key points are highlighted in the chart below.
We have used the combination of the top-down trading analysis and the Andrews Pitchfork channels to get to a trading entry stop loss levels and targets indicated below.
On the Daily chart, the pair formed a downtrend Pitchfork channel and we have a test of the median 124.300 level after the rejection and reversal from the 127 level. By a trading perspective, look for the short trade entries with the stop loss above the 125 level targeting 123 level first, and in a case of a daily close below this level look for the extreme extension lower into the 121 level. Downside invalidation will come on a stop loss trigger and a daily close above the 125 level.
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