Hi Traders! EURJPY forecast follow up and update is here. On August 18th I shared this “EURJPY Forecast” in Trading View. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
My Idea:
EURJPY H1(1 Hour) Chart Current Scenario
Based on the above-mentioned analysis my view was bearish here and I was expecting the price to move lower further after pullbacks. After the bearish trend pattern the pullback that I was looking for happened in the form of two waves (you can see these two waves clearly on the M15 chart). We also had a bearish hidden divergence that had formed between the first high that has formed at 126.455 and the second high that has formed at 126.086 which we may consider as a fact provided by the market supporting the bearish view. Also on the M15 chart, we had a most recent uptrend line breakout after the double wave pattern which we may consider as another fact provided by the market supporting the bearish view. The price then moved lower further delivering 80+ pips move so far.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
EURJPY M15 Chart
Currently, on the H1 chart, we have a bullish divergence in play, this is something that we need to pay attention to. As I always suggest when you see contradictory signs like this, then you should consider managing your trade and secure your profits (cash out or partial cash out or trailing protections or partial hedge, etc.. depending on the strategy that you work with).
Note: If you want to learn about Money Management you can find it here
As traders we always have two choices, the first one is to fall in love with our analysis and try to convince the market and expect the price to move in the direction as per our wish. The second one is to follow the facts that the market provides us and make the right actions according to that. As you know the first option won’t help us and as you can see in the example above what happened when we followed the facts that the market hinted us and took the right action according to that.
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To your success,
Vladimir Ribakov
Certified Financial Technician
