Hi Traders! EURJPY short term forecast and technical analysis is here. As we do in every technical post we are going to perform the multi-time frame analysis on this pair. 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. This pair definitely looks interesting at the moment so as usual we will start our analysis from the highest timeframe which would be the H4 chart here.
EURJPY H4 (4 Hours) Chart Analysis – Bullish Channel Breakout, ADX Indicator, Heiken Ashi Candlesticks
On the H4 chart the price is moving inside a bullish channel, this channel is formed by the price reaching parallel resistance and support zones. The price which was respecting these two zones so far has currently broken below the bottom of the bullish channel and is holding below it, we may consider this as an evidence of bearish pressure. Also we don’t have any opposite evidences here and in addition to this the ADX indicator gave bearish signal at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25 which we may consider as another evidence of bearish pressure. So until this bullish channel breakout holds my view remains bearish here and my plan here is to sell the rallies with bearish evidences (candle stick patterns, false breaks, trend line breakout etc…).
In addition to this on the H4 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, so until the condition changes my view remains bearish here.
EURJPY H1 (1 Hour) Chart Analysis – Heiken Ashi Candlesticks
Looking at the H1 chart, based on the Heikin Ashi candles we can see that currently we have strong bearish bodies in downward moving market conditions here as well, so it basically reflects a bearish environment so until the condition changes my view remains bearish here on the short term.
Technical Analysis & Forecast Summary
EURJPY H4 (4 Hours) Chart Analysis
- Bullish Channel Breakout, ADX Indicator, Heiken Ashi Candlesticks
EURJPY H1 (1 Hour) Chart Analysis
- Heiken Ashi Candlesticks
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