On the daily chart below, you can see that after breaking down through the trend line, price hasn’t been able to make a lower low and has in fact stalled at the previous resistance turned support level that we have been speaking about:
EUR/JPY Daily:
With trend lines being relatively subjective, when these horizontal levels form, they are perfect to manage risk around. Added significance can also be given to the level if it’s on a higher time frame, such as the daily chart that we’ve highlighted it on above.
