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EURJPY D1(Daily) Chart Analysis – Bearish Divergence, Uptrend Line Breakout, Parabolic Sar, ADX Indicator, Head And Shoulders Pattern
On the daily chart have a bearish divergence that has formed between the first high that has formed on 5th June 2020 and the second high that has formed on 13th August 2020 based on the MACD indicator, which we may consider as evidence of bearish pressure. In addition to this, we had a good uptrend line that has formed and the price which was respecting this dynamic support so far has currently broken below it. And, based on the Parabolic Sar the dots are above the price, we may consider these as other evidences of bearish pressure.In addition to this, the ADX indicator gave a bearish signal at the cross of -DI (red line) versus +DI (green line), and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bearish pressure.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
We also have a head and shoulders pattern (If you want to learn about the important Forex chart patterns you can find it in this book The Inside Secrets Of Elite Traders Patterns, you can find my review on this book here) that has formed and a valid breakout below the neckline of this pattern would be a good sign for further continuation lower. So based on all this, my view here is bearish and I expect the price to continue lower further.
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