Last week analysis was very profitable. In analysis entitled: “EURJPY – approached important support”, I wrote: “Rebound may occur in a moment. Key level which should bring demand reaction is located near 126.50”. In fact rebound occurred 50 pips above that level and signal to take the long position was OUTSIDE BAR price action pattern. It is visible at chart H4 (pointed by arrow). Low of that pattern was deepened by long shadow (it required wider SL or renewed long position), after which upward movement continued to first resistance at 128.80.
If this resistance breaks next target for bulls will be located at 129.80, 130.75. However if declines shows once again, supply will want to test area 126.50 and there should be stable rebound.
