Last week, the EURJPY market sold off aggressively as the EURO weakened right into last weeks close. The rising trendline which is dominant on the daily chart was tested and demonstrated some supportive properties. We know this because the Friday candle did have a bit of a lower tail poking out the bottom of it.
During last session’s trading, the market stalled as price churned at this key focal turning point in the market. We will most likely see a breakout of the Inside Day pattern, but it really can go either way here. If the trendline holds, the Inside day could break it’s highs as the market continues up wards, which is the likely scenario. Or, the trend line will fail as the inside day’s lows are broken and price collapses downwards.