EUR/JPY Trading Plan for November 5

Trading 05 Nov 2020 Donner votre avis

The single European currency declined by 80 points or 0.65% against the Japanese yen on Wednesday. EUR/JPY is currently holding at 122.70 back in the range. If we see a breakthrough above the significant key level of 122.50, we can expect a continuation of the movement to the target at 124.00 phycological area.

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In the early session, EUR/JPY formed an inverted Head and Shoulders (HNS) reversal pattern. This reversal pattern confirms the bearish move from 20-30th October that may turn into a near-term bull market coupled with a bullish impulse breakthrough to test. Currently, the price is about to retest the neckline breakout boundary of the pattern.

If the breakout occurs above 123.00, a surge towards the 124.0 level could be expected to a retest the ascending trend line. However, if the channel pattern fails to hold, bears might drive the price back to October low in the following trading days.

The material has been provided by InstaForex Company - www.instaforex.com

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