The following EURJPY Renko Technical analysis makes use of a 50 pip fixed box size chart off a 60 minute closing price chart time frame.
Inverted head and shoulders pattern – A continuation pattern since it formed near the top, the IHS gives an upside target to 140.762
Price broke out of the falling price channel at 136.762, rallied towards resistance at 138.762 – 138.262 before easing back.
Price is now testing the break out of the price channel at 136.262 – 136.762. This level is also marked by the rising trend line which shows confluence with the horizontal support
There is however a downside risk assuming the double top pattern, which if validated could see a decline to 135.762 But the upside outweigh the downside risks.
Therefore, we conclude that EURJPY long from 136.262 – 136.762 targeting 140.762 with stops at 134.762
