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.
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 & 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
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