EURJPY more pain is coming after the long-term channel break
In this article, we are drawing Pitchfork channels for EURJPY
On the Monthly EURJPY chart, we can see that the pair has broken the long-term uptrend Pitchfork channel and it is trying to extend lower. A key level for an extreme downside extension is 120.500. We need to see a daily close below this level.
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ARMAT-one word for 30 years of combined trading experienceUsing 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 instrument formed a new downtrend Pitchfork channel which could lead to a test of 114 Median level if we get a break below the 120.500. By a trading perspective, look for the short trade entries with the stop loss above 120.700 in the case of a daily close below 120.500. Downside invalidation will come on a stop loss trigger and a daily close above the 122 level. Look for a 114 target especially in the case of a break below the 120.500 level.
Happy trading! (click on the chart to enlarge it)