What’s up, traders?

In the forex market, volatility is expected to remain very low as most markets are closed for Good Friday and Easter. However, the Japanese cross EUR/JPY is offering a really cool breakout setup. Let’s check it…

EUR/JPY –  Technical Setup

At the moment, the EUR/JPY is trading at 130.800, right above the major support area of 130.600. I would like to highlight the number of Doji and Spinning Top candles right above 130.600. Perhaps this is owing to thin trading volume.

But the question is whether EUR/JPY is likely to continue the bullish momentum?

EUR/JPY – 4 Hour Chart

Well, on the 4-Hour chart, the EUR/JPY is trading in the oversold zone. The RSI and Stochastics are below 20, which signifies the potential for a bullish reversal.

You can also see a symmetric triangle pattern, which is supporting the pair near 130.600 with a hurdle up there at 131.400.

EUR/JPY – Trading Plan

Fellas, It looks like a good opportunity to go long with a minor stop loss of 130.350 and a take profit of 131.400.  

Good luck!