Hi Traders! EURJPY short term forecast update and follow up is here. On March 12th 2025 I shared this “EURJPY Short Term Forecast And Technical Analysis” post in our blog. In this post, let’s do a recap of this setup and see how it has developed now. 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!
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My Idea
On the H4 chart, the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. 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 yet another evidence of bullish pressure. Also, currently we have a potential a bearish divergence between the first high that has formed at 161.256 and the second high that has formed at 162.341 based on the MACD indicator, which we may consider as evidence of bearish pressure. So based on all this, I personally expect a possible correction to happen now and then the price to potentially move higher further until the two strong support zones (marked in green) shown in the image below hold.
EURJPY H4(4 Hours) Chart Current Scenario
In this pair, based on my technical analysis I mentioned that “Until both these key support zones shown in the image below holds my short term view remains bullish here and I expect the price to move higher further after pullbacks”. The price action followed my analysis exactly as I expected it to here. The price which was moving lower reached the first key support zone, respected it and then moved higher from this zone. The price then moved higher further and delivered around 700+ pips move!
On the H1 chart, the market provided us with various facts supporting the bullish view. The price which was moving lower created a bullish divergence between the first low that has formed at 160.110 and the second low that has formed at 158.271 based on the MACD indicator. The price then moved higher and broke above the most recent downtrend line, we may consider these as facts provided by the market supporting the bullish view. Then as you can see in the image below how the price moved higher after that and provided an excellent move to the upside!
So, traders, this is why I wanted to show this example to help you understand how important it is to follow the facts. The facts were supporting the bullish view here and there were no signs against it. When the facts do happen as we expected you can see how the price perfectly moved as per the plan. Because these are the kind of hints the market provides us with the majority of the time and it’s our obligation as traders to be able to listen to these things that the market tells us and we should try to make the right actions accordingly.
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Arvinth Akash
Home Trader Club Team.
