Hi Traders! Today I am sharing with you the EURJPY forecast and technical analysis post. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting and useful tips and hacks about the MT4 platform could be found here. 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!
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EURJPY H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Bearish Trend Pattern, Potential Bearish Divergence, Stochastic Oscillator, Strong Resistance Zone
On the H4 chart, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward moving market conditions so it basically reflects a bearish environment.
In addition to this, we could see that the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows we may consider this as another evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like a correction is happening. In addition to this we have a potential bearish hidden divergence that has formed between the first high that has formed at 131.175 and the second current high that has formed at 129.116 based on the MACD indicator. Also, based on the Stochastic Oscillator we could see that the price has reached its extreme, we may consider these as other evidences of bearish pressure. In addition to this, we have a strong support zone that has formed and the price which is moving lower has broken below this zone and is holding below it. Currently, this strong support zone is acting as a strong resistance zone for us. Until this strong resistance zone holds my view remains bearish here and I expect the price to continue lower further.
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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To your success,
Vladimir Ribakov
Certified Financial Technician
