Hi Traders! We have EURJPY buy setup forming at the moment. A detailed analysis of this bullish opportunity is as follows:
EURJPY W1 Chart:
On the weekly chart the price is moving inside a channel, this channel is formed by the highs and lows reaching parallel resistance and support zones. The price which is respecting this channel so far has currently reached the bottom of this channel and is moving higher. In addition to this we also have a bullish divergence that has formed which we may consider as an evidence of bullish pressure. We may now look for more bullish evidences in order to start looking for buys.
EURJPY D1 Chart:
On the daily chart the price has created bullish divergence and false breaks we may consider these as evidences of bullish pressure. Currently the price has created higher highs thus forming a bullish convergence. Hence as per the book scenario we may now look for pullbacks and buys with more bullish evidences.
EURJPY H4 Chart:
We have a bearish divergence that has formed which we may consider as an evidence of bearish pressure. Until the last low holds, we may look for retraces and then buys with bullish evidences.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Not sure how to spot reversals (bounces)? Not sure how to spot breakouts?
I invite you to join me in my live trading rooms, on daily basis, and improve your trading with us.
Also you can get one of my strategies free of charge. You will find all the details here
Chief Trader at Traders Academy Club