See the Daily chart above. We have a nice Hammer formed on Feb 12th at the support level 121.58. What makes this Hammer significant is the following:
* Prices found support at 121.58 on Feb 04th;
* Did a false breakout at the same 121.58 on the following day (Feb 05th) just to push prices up to 124.18;
* After a Bearish move from 124.18, we had quick false breakout again at 121.58 with prices closing as a Hammer.
Odds are that 121.58 price area is working well as support. That is why I´ll try to catch LONG positionings at EUR/JPY during the next week. My entry points will be:
* LONG at 121.82 and 121.58 as Support levels, with tight stops.
* LONG at break of 123.00, 123.15, 124.18 and 124.50. All also with tight stops.
For all these entry levels the LIMIT is 126.50
If prices move below 122.00 and 121.58 this possible Bullish move will be negated.
