EURJPY Technical Analysis And Forecast

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EURJPY Forecast Follow Up and Update

Hi Traders! EURJPY technical analysis and forecast is here. 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. 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!

EURJPY D1(Daily) Chart Analysis – Strong Support Zone, Bullish Divergence, ADX Indicator, Downtrend Line Breakout

On the daily chart, 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 expect corrections and then potential continuation higher. Also while measuring the bullish trend pattern using the fibonacci retracement tool we have a strong support zone that has formed based on the 38.2%(122.275) – 50%(120.776) fibonacci retracement zones. The price which was moving lower reached this strong support zone, respected it, and is currently moving higher. We also had a bullish divergence that has formed between the first low that has formed on 28th September 2020 and the second low that has formed on 30th October 2020 based on the MACD indicator which we may consider as evidence of bullish pressure. Also, the price which is moving higher has currently broken above the most recent downtrend line and is holding above it, we may consider this as another evidence of bullish pressure. In addition to this the ADX indicator gave a bullish signal 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. We may now move down to one timeframe lower and see if we can find evidences supporting this bullish view.

(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)

EURJPY Technical Analysis And Forecast

 

 

EURJPY H4(4 Hours) Chart Analysis – Heikin Ashi Candles, ADX Indicator

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. So until the condition changes my view remains bullish here. Also there are no signs that show this bullish trend is over yet. 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 yet another evidence of bullish pressure. So the bottom line here is that the H4 chart has evidences supporting the bullish view.

EURJPY Technical Analysis And Forecast

 

EURJPY H1(1 Hour) Chart Analysis – Bullish Trend Pattern, Strong Support Zone, Stochastic Oscillator

On the H1 chart 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 expect corrections and then potential continuation higher. Currently it looks like a correction is happening, once this correction completes itself we may then expect the price to continue higher further. Also based on the Stochastic Oscillator we could see that the price has reached its extreme. In addition to this we had a strong resistance zone and the price which was moving higher has broken above this strong resistance zone and is holding above it. Currently this strong resistance zone acts as a strong support zone for us. So until this strong support zone holds my view remains bullish here and I expect the price to continue higher further.

EURJPY Technical Analysis And Forecast

 

Technical Analysis & Forecast Summary

EURJPY D1(Daily) Chart Analysis 

  • Bullish Divergence,  Strong Support Zone, ADX Indicator, Downtrend Line Breakout

EURJPY H4(4 Hours) Chart Analysis 

  • Heikin Ashi Candles, ADX Indicator

EURJPY H1(1 Hour) Chart Analysis 

  • Bullish Trend Pattern, Strong Support Zone, Stochastic Oscillator

 

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.

Also don’t forget to protect your buy 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.

Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?

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

 

Happy Trading!

Yordan Kuzmanov
Chief Trader at the Traders Academy Club

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