This chart shows how we can follow the movement of EURJPY and Fibonacci levels. Any pullback that ends before the 50.0% Fibonacci level can be considered a strong trend and a continuation in the direction of the previous impulse.
So here we have an impulse from 124,333 to 140,034, then a pullback to 132,628 level follows, a drop of about 5% of the value. This was followed by a new bullish impulse to 144,257, then a retreat to 136,880, again a decline of about 5.0% in value. This pullback was stopped at the 61.8% Fibonacci level and at the 38.2% Fibonacci level of the setup at 124.333-144.257.
Additional support for a new bullish impulse is the formed growing channel connecting previous higher highs and lower lows. We need a break above the 140.00 level for a stronger bullish option. After that, we can expect to see EURJPY in the previous resistance zone around 144,00. We need a break below the 136,600-137,000 support zone for a bearish option. After that, our target is 131,950-132,600, the potential next support zone.
So here we have an impulse from 124,333 to 140,034, then a pullback to 132,628 level follows, a drop of about 5% of the value. This was followed by a new bullish impulse to 144,257, then a retreat to 136,880, again a decline of about 5.0% in value. This pullback was stopped at the 61.8% Fibonacci level and at the 38.2% Fibonacci level of the setup at 124.333-144.257.
Additional support for a new bullish impulse is the formed growing channel connecting previous higher highs and lower lows. We need a break above the 140.00 level for a stronger bullish option. After that, we can expect to see EURJPY in the previous resistance zone around 144,00. We need a break below the 136,600-137,000 support zone for a bearish option. After that, our target is 131,950-132,600, the potential next support zone.
