EURJPY Short Term Forecast And Technical Analysis

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EURJPY Short Term Forecast And Technical Analysis

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…).

EURJPY Short Term Forecast And Technical Analysis

 

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 Short Term Forecast And Technical Analysis

 

 

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.

EURJPY Short Term Forecast And Technical Analysis

 

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

 

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 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.

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If you have any further questions, don’t hesitate to drop a comment below!

 

Yours to success,

Vladimir Ribakov
Certified Financial Technician

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