Bull flag pattern on EUR/ JPY
- A flag pattern formed on the 4H timeframe which might be signaling a potential bullish breakout. However, given that EUR/ JPY tested October high without a clear breakout above this level, investors might want to take caution and wait for a decisive breakout before taking a position.
- A decisive break above Tuesday high, 125.2, would signal for a further uptrend. EUR/JPY could continue to trade within the flag or break downwards.
- Traders who are expecting the flag pattern to continue, or betting an upward breakout could long near the bottom of the flag with an appropriate stop losses level. Next potential support level would be 50% fibo retracement and 23 Oct low, at around 123.4.
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