Forex: EUR/JPY purchases continue

EUR/JPY

Time frame: H4

Technical analysis:

The chart shows that the pair managed to make a second test of the long-term trend line from where we were positioned with "buy" orders. After the test, she headed north, reaching resistance at 23.6% on Fibonacci and a downward trend line. With this, the price forms a head and shoulder formation, and on Friday she managed to break the resistance and activate it. But how do we know where to get our money?

The rule states that we measure the whole head (H), then design the measured pips from the broken point(H1). This projection coincides perfectly with the long-term downward resistance of the channel (the blue trend line). That's where most traders would take their profits , and this is why Take Profit 1 is set there. But working with this tool does not end here.

The chart shows possible scenarios in which the price manages to break the blue trend line. In this case, we can position again in a deal, but only after a clear test in which the price stays above the breakthrough. If this happens, we enter "buy" orders, and we need to look for profit taking around the Take Profit 2 area.

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