Looking for a Pennant?
Today we will take a look at the EURJPY and a possible pennant, we can note overall we have been moving lower from May 2019 and hit the lows of 115.86 and have retraced to the 120 area the 38.2% fib of the overall move down, we have now moved off that level to continue lower.
We now focus in on the hourly chart where a possible pennant may form, price is surrounded by two converging trendlines and is moving against the trend. Pennants perform well near yearly lows which we have in this example. So, we will see if price breaks the lower trendline and moves to the 117.75 area