Hi Traders! EURJPY short-term forecast and technical analysis post is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting, 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 Home Trader Club Spoiler alert – free memberships are available!
EURJPY H1(1 Hour) Chart Analysis – Bearish Trend Pattern, Bearish Divergence, Two Key Resistance Zones
On the H1 chart, we could see that the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows we may consider this as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like the correction that we were looking for is happening. Also, while measuring the first wave of this correction, we have two key resistance zones that has formed. The first key resistance zone is formed by the 100% (155.942) Fibonacci expansion level of the first wave and the second key resistance zone is formed by the 161.8%(157.045) Fibonacci expansion level of the first wave. The price has currently reached the first strong resistance zone, respected it and is bouncing lower from it. In addition to this, we had a bearish divergence that has formed between the first high that has formed at 156.531 and the second high that has formed at 156.336 based on the MACD indicator, we may consider this as another evidence of bearish pressure. Until these two key resistance zones (marked in red) shown in the image below hold my short term view remains bearish here and I expect the price to move lower further.
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 short-term 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.
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Arvinth Akash
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