Remember the EUR/JPY retesting confluence of support setup that we were trading? Well we’re back!
This is a prime example of what actually normally happens once a trend line breaks. We see sideways consolidation followed by price simply moving back in the direction of the original trend:
EUR/JPY Daily:
But it’s the marked horizontal level that I really wanted to highlight this morning. By looking for confluence of support and backing up trend lines with solid horizontal levels, you’re giving yourself that backstop. There is no subjectivity in a straight line and as you can see here, the level has been touched again basically to the pip.
So long as price is above the higher time frame zone that is also on that chart, these sorts of pullbacks should be looked at as possible buying opportunities.
