Today, we will focus on the two pairs with the JPY an Oil. Let’s start with the EURJPY, where yesterday’s daily candle is a shooting star. It would be meaningless if not the fact that this candle is being present on an important horizontal resistance. What is more, when we look closer, we can see that there is a chance for a Head and Shoulders pattern. Buyers beware!
On the other hand, USDJPY is giving us hints about the future upswing. The price defended the up trendline and the mid-term horizontal support. In addition to this, we have a flag formation. All that promotes a further upswing.
Oil broke the upper line of the symmetric triangle and the neckline of the inverse head and shoulders pattern. That gives us a proper buy signal. The current momentum should allow us to see the new long-term highs relatively soon.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
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