Technical Analysis – EURJPY Short Term Forecast

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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 in order to find the possible trading opportunities. 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, Important Resistance Zone, Bearish Divergence

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 is respecting these two zones so far and currently it has reached the top of this channel. If we didn’t get a valid breakout here we may then expect the price to respect this top and move lower again. Also while measuring the fibonacci extension levels of the first wave we have the 100% fibonacci extension level at 120.825 coincides with the top of this bullish channel which makes this area a very important resistance zone. In addition to this we also have a bearish divergence that has formed between the first high that has formed on 13th March 2020 and the second high that has formed on 25th March 2020 based on the MACD indicator which we may consider as an evidence of bearish pressure. We may now move down to one timeframe lower and see if we have evidences supporting this short term bearish view.

Technical Analysis - EURJPY Short Term Forecast

 

 

EURJPY H1 (1 Hour) Chart Analysis – Bearish Divergence, Strong Resistance Zone

On the H1 chart we have a bearish divergence that has formed between the first high that has formed on 23rd March 2020 and the second high that has formed on 25th March 2020 based on the MACD indicator which we may consider as an evidence of bearish pressure. In addition to this while measuring the two small waves we have using the fibonacci extension tool, the 161.8% fibonacci extension level of the first wave at 121.264 and the 100% fibonacci extension level of the second wave at 121.298 coincides with the H4 important resistance level which makes this area a very strong resistance zone. Until this resistance zone holds my short term view remains bearish here, if the price moves lower and breaks below the low at 119.508 (marked in blue line) it would then open the door for the bears.

Technical Analysis - EURJPY Short Term Forecast

 

Technical Analysis & Forecast Summary

EURJPY H4 (4 Hours) Chart Analysis

  • Bullish Channel, Important Resistance Zone, Bearish Divergence

EURJPY H1 (1 Hour) Chart Analysis

  • Bearish Divergence, Strong Resistance Zone


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.

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!

 

Yours to your success

Vladimir Ribakov

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David Uwagwuna
4 months ago

i can beat my chest and say you are the best financial analyst i have ever come across in my life time. please keep the good work up. soon to sign for tac…….

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Vladimir Ribakov
Vladimir Ribakov
Reply to  David Uwagwuna
4 months ago

Thank you very much David

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Enrico
Enrico
4 months ago

Thank you so much Vladimir. Making best use of this time by gaining knowledge through your website and through your guidance. Keep it up man :.)

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Vladimir Ribakov
Vladimir Ribakov
Reply to  Enrico
4 months ago

Thank you very much Enrico

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