Hi Traders! EURJPY forecast follow up and update is here. On October 13th I shared this “EURJPY Forecast And Technical Analysis” 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 H4 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 129.495 thus creating higher highs which we may consider as another evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here as well at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as another 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 and I expect the price to move higher further after pullbacks.
EURJPY H4(4 Hours) Chart Current Scenario
Based on the above-mentioned analysis my view was bullish here and I was expecting the price to move higher further after pullbacks. The deeper pullback that we wanted never happened however smaller pullback did happen on the M15 chart. The price then moved higher further and has delivered around 250 pips move so far. If you followed this idea, you should be in good profits by now.
You can see the pullback clearly on the M15 chart below. We also had a bullish hidden divergence that had formed between the first low that has formed at 130.886 and the second low that has formed at 130.992 based on the MACD indicator which we may consider as a fact provided by the market supporting the bullish view. Then as you can see in the image below how the price moved higher further and provided an amazing move to the upside.
Currently on the H4 chart, we have a bearish divergence in play, this is something that we need to pay attention to. So if you are still involved in the buys then this is a good place to consider managing your trade and secure your profits (cash out or partial cash out or trailing protections or partial hedge, etc.. depending on the strategy that you work with).
Note: If you want to learn about Money Management you can find it here
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 us and took the right action according to that.
For similar trade ideas and much more I invite you to
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If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Arvinth Akash
Traders Academy Club Team.
