EURJPY Trading Analysis

by: Colibri Trader

 

Dear traders,

Last week’s trading analysis did not really perform as expected. The USDCAD pair went higher initially to only find resistance too strong at 1.2840 and revert.

Below, I am showing you a bullish rejection on the 4 hour chart of the USDCAD:

eurjpy trading analysis

As you can see from the chart above, price could not find a reliable setup from the lower timeframe (the 4 hour hart) and reversed course.

Currently, it is looking more bearish than bullish, but let’s not forget that the 1.2660 support level is just inches away. I will therefore not do anything for the time being.

 

EURJPY Trading Analysis

 

There is an interesting formation on the EURJPY daily chart. The last two candles have thoroughly engulfed the previous red candle. This gives way to a two-day bullish engulfing pattern.

In other words, I am expecting to see more bullish behaviour in the sessions to come.

What is even more to it, I will be looking for a small retracement down to the level of 132.400. Then, I will be looking for an indication from the 4 hour chart and could take a long trade (if all stars align).

A good level to target will be 134.500, which is the next resistance level. If price breaks above this level, we can see it reaching for the next major resistance level, which is 140.00.

All in all, this could be a great entry point if all the question marks are answered.

Happy Trading,

Colibri Trader

 

p.s.

Have you checked my article on the Bullish and Bearish Engulfing Patterns?

Check also what is the best time to trade FOREX

Learn how to trade using my trading strategy HERE

or simply ask me anything on: admin@colibritrader.com