Hi Traders! EURJPY forecast update and follow up is here. On April 6th I shared this “EURJPY Technical Analysis And Forecast” 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, currently, it looks like a flat correction is happening in the form of a range. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which is moving inside this range has reached the bottom of this range, respected it, and bounced higher from this zone. Also, we had a bullish divergence that has formed between the first low that has formed at 134.514 and the second low that has formed at 134.300 based on the MACD indicator which we may consider as evidence of bullish pressure. In addition to this, based on the Parabolic Sar we could see that the dots are below the price which we may consider as yet another evidence of bullish pressure. Until the bottom of the range holds my view remains bullish here. A valid breakout above the top of the range would be the validation for this bullish view, we may then expect the price to move higher further.
In this pair based on the above-mentioned analysis, my short term view was bullish here and I was expecting the price to move higher further. Also, I mentioned that “If we get a valid breakout above the top of the range we may then consider it as a validation for this short term bullish view and may expect the price to move higher further. The validation for the short term bullish view which is a valid breakout above the top of the range happened here as per the plan. We then had a pullback and then the price moved higher further delivering 180+ pips move so far.
As traders we always have two choices, the first one is to fall in love with our analysis and try to convince the market and expect the price to move in the direction as per our wish. The second one is to follow the facts that the market provides us and make the right actions according to that. As you know the first option won’t help us and as you can see in the example above what happened when we followed the facts that the market hinted to us and took the right action according to that.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
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