EurJpy Short Setup

Kindly leave your comments should you have any different view on this. This is solely based on a technical analysis I did. Should there be any Fundamental elements that I am not aware of that one believes would defy this, please throw in some of the info. I believe that way, it will only make me better 🙂

EurJpy Daily Chart

Price opened at a bear sell area zone, between MPP and WM3 with bears selling it at this month's high, WM3. It went on to break down the trend line drawn from 18 may and 30 May. It recently came off just above the 61.8 fib level retesting the same trend line. It is currently trading within a descending channel and also with an overbought stochastic, one should see some bearish price action from here on.

EurJpy H4 Chart

Price opened at WM3 at the beginning of the week. Though we haven't had any major movement, price found support at the weekly pivot and retraced up to WM3. Market action moving averages are totally flat and a break down beyond them will at most signal a bearish sentiment.

EurJpy H1 Chart

Though there wasn't much of a trend through a series of higher highs and higher lows, price has double topped. personally these are the kinds of reversal patterns I would want to get on smaller time frames when one has identified selling opportunities on higher times frames. For a more conservative entry one would have to wait for a retest at the neckline.

One thought on “EurJpy Short Setup”

  1. Maryna says:

    Hey Tsholanang , this pair is really on the edge of a cliff from my analysis. The pair closed above 123.60 recently and this is a key price level for bulls to overcome if they intend going higher. I suggest you wait to see how the market behave at 124.20 as this is where the “edge of the cliff” is. When you look at your Weekly chart you will see what appears to be an ascending channel since July of last year. I will be neutral on this pair until the market gives a clear sign of direction at the 124.20 area on a bigger timeframe e.g. Daily before entering a trade. Hope my inputs are of value.

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