Since March 13 the EUR/JPY currency pair has changed direction - it became strongly downward and until yesterday the pair declined by around 790 pips, a large number that translates into a big loss for the pair. However, after yesterday's close we think the pair has finished the bleeding journey and will start rising now, so if you want to make money read this report till the end.
Firstly, we have a very strong support area and the prices gave us the buy signal, so let's take a look at the chart:
1. In the rising wave after the Brexit on June 24 till the peak on December 15, the pair reached 61.8%; this is the golden correction percentage and it's expected the pair will rise from there.
- In the smaller rising wave from February 27 till March 13 the pair reached 161.8, the golden extension percentage.
- The rising trend line from July 6 which the prices touched four times before and rose, the prices have touched again this week and are expected to rise again.
- On the daily chart yesterday's candle is a bullish engulfing one, which refers to the uptrend.
The Next Few Days
From this analysis of the daily chart we can buy the pair now at 115.95 and keep our first target at 118.20 and the second one at 120.10, especially after we saw the RSI indicator give us a buy signal and rose to 37 level.
This week we won't have any hot news from the European Union until Sunday (French elections) or even from Japan, but be careful about any unusual news that can change the market direction.
