From investor to scalper is an analysis cycle in which we take one financial instrument each day and the analysis includes a detailed look at the value from the monthly/weekly chart to the H1/M15.
As a result of declines from December 2014, the EURJPY reached 111.00, converging with 70.7% of the Fibonacci correction from previous increases where demand response occurred. It is worth noting that even though this level was defeated in December 2012, it was only its first re-test. Since then, we have seen increases again. It is also noteworthy that, as a result of these increases, the market has already overcome the extremely important resistance of 127.20 which may support the continuation of this trend in the longer term.
Looking at the daily chart it is worth noting that for the vast majority of time this increase was within a channel, from which at the end of June we broke up to the north.
For some time the market is moving in consolidation. As a result of last week’s declines, the pair reached lower limit of this box, where the first demand response occurred. Permanent rejection of this zone could open the way to continuation of growth.
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But first we would have to overcome local resistance, converging with the 38.2% of the Fibonacci correction in which vicinity we are currently.
