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! Now, let’s start our analysis from the highest timeframe which will be the daily chart here.
On the daily chart, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. Also, the price which was moving higher has broken above the last high at 130.742 thus creating higher highs which we may consider as another evidence of bullish pressure. Currently, it looks like a correction is happening. Also, while looking at the Stochastic Oscillator we could see that the price has reached it’s extreme, which we may consider as yet another evidence of bullish pressure and in addition to this, there are no signs of trend change. So, everything looks good here for the bulls and we may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
On the H4 chart, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies here as well in upward moving market conditions so it basically reflects a bullish environment. Also, the price which was moving lower has created a bullish divergence that has formed between the first low that has formed at 132.257 and the second low that has formed at 131.474 based on the MACD indicator which we may consider as evidence of bullish pressure. We also 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 hold my view remains bullish here. If we get a valid breakout above the most recent downtrend line we may then consider it as a validation for this bullish view and may expect the price to move higher further.
EURJPY D1(Daily) Chart Analysis
EURJPY H4(4 Hours) Chart Analysis
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.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
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