News & Analysis

EURJPY – Unearthing A Potential 2015 Target

December 15, 2020
EURJPY – Point & Figure


At the start of the month, we witnessed a sizeable shift in sentiment towards the Euro, hiking up demand and resulting in a strong bullish rally. Since then, price action has behaved mostly sideways, but there are signs of bullish activity stemming from this initial move. In today’s Chart of The Day, we’re looking at a potential return to May 2015 levels using point and figure analysis.

We currently see a double top formation at the 126.00 level as EURJPY remains propped up by a bullish support line. This particular support line isn’t new. It originated earlier in the year but has now shifted higher in-line with the emerging trend.

While longer-term support appears steady at 122.00, with increased demand, we may see the pair targeting the somewhat elusive 128.00 area that EURJPY has struggled to close above of late. The next significant resistance level looks to be 132.60 should this trend continue.

Finally, these are not the only upside targets worth considering. If we carry out a vertical column count from the low of 115.00, an interesting figure emerges. Following a quick calculation of the proceeding column’s range, it results in an upside target of 140.50. This level was an exact high for EURJPY on the point and figure chart back in May 2015. Despite being quite a distance from this price, it’s not unimaginable to think it could journey in this direction given the trend’s current trajectory and volatility in the marketplace. Only time will tell.

Note: Click on charts to enlarge.


By Adam Taylor CTEe


Sources: Go Markets, Meta Trader 5, TradingView, Bloomberg

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