Hi Traders! Today I share with you my EURJPY short term forecast and technical analysis post, we do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. As we do in every technical analysis post we are going to perform the multi-timeframe technical analysis on this pair in order to find possible trading opportunities. 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! Let’s start our analysis now from the highest timeframe which will be the daily chart here.
On the daily chart, we could see that the price which was moving higher has created a bullish trend pattern in the form of three higher highs, higher lows which we may consider as evidence of bullish pressure. Generally, after a bullish trend pattern we may look for corrections and then further continuation higher. Currently it looks like a flat correction is happening in the form of a range. While measuring the first wave inside this range we have a key support zone that has formed. This key support zone is formed by the 100%(127.397) Fibonacci expansion level of the first wave and the bottom of the range. The price which was moving lower reached this key support zone and is currently bouncing higher from this zone. In addition to this, the ADX indicator gave a bullish signal here 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 evidence of bullish pressure. So, everything looks good here for the bulls and we may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
On the H1 chart, the price which was moving higher has broken above the last high at 128.465 thus creating higher highs based on the MACD indicator which we may consider as evidence of bullish pressure. We also have a potential bullish hidden divergence that has formed between the first low that has formed at 127.599 and the second current low at 128.201 based on the MACD indicator which we may consider as another evidence of bullish pressure. Also, based on the Stochastic Oscillator we could see that the price has reached its extreme, which we may consider as another evidence of bullish pressure. In addition to this, we 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 holds my view remains bullish here and I expect the price to move higher further.
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 buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
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