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, the price which is moving higher has reached a key resistance zone formed by the 61.8% (125.487) Fibonacci expansion level of the first wave and the 61.8%(126.406) Fibonacci expansion level of the second wave we have. The price is currently holding in this key resistance zone and also it has created multiple false breaks (marked in green dotted lines) which we may consider as evidence of bearish pressure. In addition to this, we have a bearish divergence that has formed between the first high that has formed on 3rd December 2020 and the second high that has formed on 7th January 2021 based on the MACD indicator. Also, we have an uptrend line breakout based on the RSI indicator, we may consider these as other evidences of bearish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bearish view.
On the H1 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.
EURJPY D1(Daily) Chart Analysis
EURJPY H1(1 Hour) 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 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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To your success,
Vladimir Ribakov
Certified Financial Technician
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