Hi Traders! EURJPY short term forecast update and follow up is here. On December 9th I shared this “EURJPY Short Term Forecast And Technical Analysis” post in our blog. 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
On the H1 chart, the price which was moving higher has broken above the last high at 128.465 thus creating higher highs based on the MACD indicator which we may consider as evidence of bullish pressure. We also have a potential bullish hidden divergence that has formed between the first low that has formed at 127.599 and the second current low at 128.201 based on the MACD indicator which we may consider as another evidence of bullish pressure. Also, based on the Stochastic Oscillator we could see that the price has reached its extreme, which we may consider as another evidence of bullish pressure. In addition to this, we had two strong resistance zones that has formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout these strong resistance zones are acting as two strong support zones for us. Until both these strong support zones shown in the image below holds my view remains bullish here and I expect the price to move higher further.
EURJPY H1(1 Hour) Chart Current Scenario
In this pair, on the H1 chart, based on the above-mentioned analysis my short term view was bullish and I was expecting the price to move higher further until the two strong support zones hold. The price action followed my analysis exactly as I expected it to here. The price which was moving lower reached the first strong support zone, respected it and bounced higher from this zone. Also, the price which was moving lower created a bullish divergence between the first low that has formed at 127.930 and the second low that has formed at 127.808 based on the MACD indicator. The price then moved higher and broke above the most recent downtrend line, we may consider these as facts provided by the market supporting the bullish view. The price then moved higher further as I expected it to and provided a fantastic move to the upside delivering 180+ pips move so far.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
So, traders, this is why I wanted to show this example to help you understand how important it is to follow the facts. The facts were supporting the bullish view here and there were no signs against it. When the facts do happen as we expected you can see how the price perfectly moved as per the plan. Because these are the kind of hints the market provides us at majority of the times and it’s our obligation as traders to be able to listen to these things that the market tells us and we should try to make the right actions.
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If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Arvinth Akash
Traders Academy Club Team.
