Forex Trading: EUR/JPY Near Top Of Triangle

Price action on EUR/JPY, a daily chart of which is shown, has approached dynamic resistance at the top of a sizeable triangle formation that has been in place since the early April high. This triangle upper border currently coincides approximately with the 134.00 support/resistance region.

A substantial breakout above the triangle and this 134.00 level should target further key resistance in the 137.00 price region, the approximate level of the early April long-term swing high. In the event of a further consolidation, 131.00 represents strong support, below which is dynamic support at the bottom of the triangle.

Any strong subsequent breakdown below the bottom triangle border should eventually target further key support in the 126.00 price region.

(Chart courtesy of FX Solutions’ FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)

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