This piece is about the EURJPY, where the first several hours of the new week bring us a proper upswing. That was not totally expected to be honest with you, especially on Friday, as the price closed the previous week on the weekly lows.
On Monday, traders decided to ignore this fact and made a proper reversal, which actually created a false breakout pattern (orange). False breakouts are usually strong signs to open the opposite trade (and we mention that very often) and this is precisely what is happening now. EURJPY came back above the mid-term up trendline (red), which cancels the bearish sentiment. We are currently very close to break the long-term down trendline (blue) along with the green horizontal resistance, which in theory should bring us a proper buy signal. In this case, only the price closing a day above the green area will be a legitimate trigger to go long.
To sum up. As for now, you should be patient. According to my understanding of the price action, there is currently no signal here. There should be very soon though! Better to be safe than sorry, so we advise to wait for an extra confirmation before making any decision.
