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 H4(4 Hour) Chart Analysis – Bearish Trend Pattern, Bearish Hidden Divergence, ADX Indicator, Two Strong Resistance Zones
On the H4 chart, we could see that the price which was moving lower has created a bearish trend pattern in the form of three lower highs, and lower lows we may consider this as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then a further continuation lower. Currently, it looks like the correction that we are looking for has happened in the form of a double wave to the upside. In addition to this, we had a bearish hidden divergence that formed between the first high formed at 142.941 and the second high formed at 141.357, followed by a continuing bearish divergence between the first high that formed at 141.357 and the second current high that formed at 142.851 based on the MACD indicator, we may consider these as other evidence of bearish pressure. In addition to this, the ADX indicator gave a bearish signal here at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads a value over 25 which we may consider as yet another evidence of bearish pressure. Also, we had two strong support zones and the price which was moving lower has broken below these zones and holding below them. We may consider this as yet another evidence of bearish pressure. Currently, these two strong support zones are acting as two strong resistance zones for us. Until both, these 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
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Arvinth Akash
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