EURJPY: Trading Idea

The EURJPY is trading at the previous high, a pretty strong resistance zone. Yesterday the market tried to break that resistance but failed to do so, but what is more interesting is the way it came back… Now, it is trading in a tight range (green lines) and I think it is getting ready to break… but which way?



Right now I’m waiting for the market to break either extreme of the range, but here is my plan:

If the market breaks 137.24 (green resistance line – short term resistance), I will look for long opportunities and it should take it to 139.85 (upper blue line – long term resistance zone).

If the market breaks 135.71 (green support line – short term support), I will look for short opportunities, this should take the market to 128.50.