On the D1 EURJPY chart price tested a strong resistance around the 121.50 level. The last test of the aforementioned area was characterized by an increased supply response and new lower lows. Confluence for the zone is also downward trend line. It’s worth looking at a chart with lower time interval.
On the H4 chart you can see a strong growth impulse and flag formation which corrects growth. Currently quotations are heading towards the top of the flag. Breaking the top and breaking the resistance 121.50 will probably open the way for further increases. A fall below the last low will increase chances of closing the bearish gap and will likely lead to a re-test of support of 116.00.
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