Hi Traders! Today I share with you my EURJPY technical analysis and forecast 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.
EURJPY D1(Daily) Chart Analysis – Strong Support Zone, Bullish Divergence, Higher Highs, ADX Indicator
On the daily chart, the price which was moving lower reached a strong support zone, respected it and bounced higher from this zone. Also, we had a bullish divergence that has formed between the first low that has formed at 127.945 and the second low that has formed at 127.927 based on the MACD indicator which we may consider as evidence of bullish pressure. The price then moved higher and broke above the high at 130.471 thus creating higher highs, we may consider this as another evidences of bullish pressure. 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. 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.
EURJPY H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Higher Highs, ADX Indicator, Two Strong Support Zones
On the H4 chart, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. Also, the price which was moving higher has broken above the last high at 129.495 thus creating higher highs which we may consider as another evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here as well 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 another evidence of bullish pressure. We also 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 hold my view remains bullish here and I expect the price to move higher further after pullbacks.
Technical Analysis & Forecast Summary
EURJPY D1(Daily) Chart Analysis
- Strong Support Zone, Bullish Divergence, Higher Highs, ADX Indicator
EURJPY H4(4 Hours) Chart Analysis
- Heikin Ashi Candles, Higher Highs, ADX Indicator, Two Strong Support Zones
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 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
