EURJPY not able to break the b-b trend line
The b-b trendline mentioned is the one of a double combination and a clear break means that the series of lower highs should be broken. Unless that is happening, the cross is poised to be dominated by bears.
Funny thing is that the ECB (European Central Bank) is supposed to cut rates early March and that should be clearly negative for all euro related pairs, but the way the EURJPY is positioning on this daily chart is not bearish at all.
It may be that the ECB is going to disappoint markets again like it did at the December meeting when expectations were not met and Euro rallied aggressively as a result. Until then though, we should be focused on the support here not to be broken and as long as it is holding, call options should be traded from the current 126.75 area.
On a move above 128.20 area the downside may be tested but from my point of view that is a risky thing in the sense that the impulsive move we’re expecting can be either a third wave extension or a first wave one.
If it is turning one to the a first wave extension, then the first wave will be the longest one and there will be no pull back at all until its completion.
How to trade
Like mentioned the other day, this is no place to look for lower values as an impulsive move to the upside should start so call options for end of day expiration should be considered.