2016-02-29_19-47-44eurjpy

Dear all,

This is the 4 hour eurjpy chart. As can be seen from the red numbers price has been coming down since 28th of January 2016.

It printed a high on that day of 132.334 and has been continuously coming down providing us with lower lows and lower highs.

When I just watched the charts right now I noticed that price has printed a double bottom at the level of 122.430

This might be a reversal of a bearish trend into a bullish one as long as the double bottom holds.

But note also that the stochastik indicator is completely overbought and that price is at support.

There has been a small bounce from support having price now at the level of 122.768.

If the next four hour candle shows some bullishness and if the stochastik indicator climbs over the 20 % level then a long trade is suggested.

The stop loss goes below the double bottom. If the bottom area breaks then this trade setup is no longer valid.

A profit target might be the next resistance area, a 5/8 cross against our position or when price action prints a double top or a lower low with a lower high scenario.

Wishing you the BEST OF PIPS….

One thought on “EURJPY 4 hour Chart Analysis”

  1. Miles Nummularius says:

    Great analysis Nuno.
    As I am reading it, price went a little below the previous low, do you still consider it a double bottom?
    Now is headed up put hasn’t printed an higher high yet, so it could still make a lower high and then another lower low, let’s see 😉

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