EURJPY Forecast And technical Analysis

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EURJPY Forecast And Technical Analysis

Hi Traders! EURJPY forecast and technical analysis is here. 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!

EURJPY D1(Daily) Chart Analysis – Bearish Divergence, ADX Indicator, Strong Support Zone

On the daily chart, we had a bullish rally which ended with a bearish divergence that has formed between the first high that has formed on 5th June 2020 and the second high that has formed on 1st September 2020 based on the MACD indicator, which we may consider as evidence of bearish pressure. Currently, it looks like a correction is happening, we have the first leg down followed by a pullback. While measuring this first leg using the fibonacci expansion tool we could see that the price still has room lower towards the strong support zone formed by the 61.8%(122.191) fibonacci expansion level and the 100%(120.406) fibonacci expansion level. In addition to this, the ADX indicator gave a bearish signal at the cross of -DI (red line) versus +DI (green line), and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bearish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this short-term bearish view.

EURJPY Forecast And technical Analysis

 

 

EURJPY H4(4 Hours) Chart Analysis – Bearish Trend Pattern, Key Resistance Zone, Parabolic Sar, ADX Indicator

On the H4 chart, the price which was moving lower has created a bearish trend pattern in the form of three lower highs, lower lows. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like the correction that we are looking for has happened. The price which was moving higher has reached a key resistance zone formed by the 50%(124.727) – 61.8%(125.279) fibonacci retracement zones of the bearish trend pattern, respected it, and is currently moving lower. And, based on the Parabolic Sar the dots are above the price, we may consider this as evidence of bearish pressure. In addition to this, the ADX indicator gave a bearish signal here as well at the cross of -DI (red line) versus +DI (green line), and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bearish pressure. So until this key resistance zone shown in the screenshot below (marked in red) holds my view remains bearish here and I expect the price to continue lower further.

EURJPY Forecast And technical Analysis

 

Technical Analysis & Forecast Summary

EURJPY D1(Daily) Chart Analysis 

Bearish Divergence, ADX Indicator, Strong Support Zone

EURJPY H4(4 Hours) Chart Analysis 

Bearish Trend Pattern, Strong Resistance Zone, Parabolic Sar, ADX Indicator

 

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.

You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.

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If you have any further questions, don’t hesitate to drop a comment below!

 

Yours for your success,

Vladimir Ribakov
Certified Financial Technician

 

 

 

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