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!
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.
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.
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.
Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?
I invite you to
JOIN HOME TRADER CLUB NOW
And improve your trading with us.
Also, you can get one of our strategies free of charge. You will find all the details here
Download our best forex indicators here
If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Arvinth Akash
Home Trader Club Team.
