Hi Traders! Today I share with you the EURJPY forecast and technical analysis post. 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. As we do in every technical post we are going to perform the multi-time frame analysis on this pair in order to find the possible trading opportunities. Lets start our analysis now from the daily chart.
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EURJPY D1(Daily) Chart Analysis – Bullish Trend Pattern, Bullish Divergence, Downtrend Line Breakout
On the daily chart we have a bullish trend pattern that has formed and then we had a retrace in the form of double wave down. We also had a bullish divergence that has formed between the first low at 119.770 and the second low at 118.455 which we may consider as an evidence of bullish pressure. Currently we have got a most recent down trendline breakout and also 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. So everything looks good here for the bulls, we may now move down to one timeframe lower and see if we have evidences supporting this bullish view.
EURJPY H4 (4 Hours) Chart Analysis – Bullish Convergence, Heiken Ashi Candles
Looking at the H4 chart we can see that the price has created a bullish divergence based on the MACD indicator and then the price moved higher creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario we may now look for corrections to happen and then possible continuation to the upside. So the bottom line here is that the H4 chart has evidences supporting this bullish view.
Also 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.
Technical Analysis & Forecast Summary
EURJPY D1(Daily) Chart Analysis
- Bullish Trend Pattern, Bullish Divergence, Downtrend Line Breakout
EURJPY H4 (4 Hours) Chart Analysis
- Bullish Convergence, Heiken Ashi Candles
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