Euro/Yen has an established trend channel, that is validated since 6th April. It’s now bouncing off the lower line and getting near the upper part of the channel, which makes it an interesting pair to watch right now.
Today the market showed demand, marked by the blue dot and by up wide range bars with very high volume. The smart money sure is buying at this price level, the question is whether it’s going to be enough to turn the trend (i.e. breaking the down trendline). The background is still marking it as weak since the market is still in a downtrend, and there needs to be a trendline break to confirm a trend change. More weakness at this price level would be very bearish though, and if on sufficient high volume, it would nullify the recent strength and keep the trend going.
In a simplified way, we will either enter in the Supply/Demand in a trend setup or Trend Changing setup.
