Price has been caught trading in a range for the past 1 month. Currently price has found support at the support zone of the range (highlighted in grey). Traders can look to go long on the short term with stop order placed at the 131.650 level looking to take profit at the 133.00 zone (highlighted in gold) for a 1:1 risk reward ratio.
Agressively, buyers can look further at the 133.40 zone (highlighted in blue) and the 134.00 zone (highlighted in green) for a 1:2 and a 1:3 risk reward ratio respectively [see H1 Chart].
Fig 1: H1 EUR/JPY Chart
Alternatively, a break below the aforementioned zone would open room for a downside move validating a bearish-flag formation [see m15 Chart] – where the gold box represents the ‘the pole of the flag’ and the skyblue box is the ‘flag’. Technically, a break below this flag-level would result to a dip in price value at least the length of the flagpole.
Fig 2: m15 EUR/JPY Chart