EURJPY | Perspective for the new weekSince my last publication on this pair (see link below for reference purposes), prices have continued to spiral downwards thereby emphasizing a downtrend momentum as the JY129 area remains the significant level keeping price under. Despite hawkish ECB, the meeting might fail to offer the Euro a lift anytime soon as I suspect that the bears are about to project into the lows in the region of 124.00 area in the coming week(s).
Tendency: Downtrend (Bearish)
Structure: Supply & Demand | Trendline | Reversal pattern (Double Bottom & Breakdown)
Observation: i. Jumping in on our 4H timeframe; it is obvious that price action has continued to find lower lows since the 10th of February 2022.
ii. A visual representation of a trend after connecting a series of prices with a line drawn above pivot highs shows the prevailing direction and speed of price in the last month.
iii. The successful breakdown of the JY129 areas which has held price "supported" since the last quarter of last year emphasizes the seller's power at this juncture in the market.
iv. During the course of last week's trading session, we witness the Euro grow 3.70% against the JPY only to find a significant resistance at the key level (JY129) on Thursday and Friday with a reversal set-up emerging within an area that is peculiar with selling potentials.
v. Now, the appearance of a Double Top structure within the identified Supply zone which also shares a confluence with the bearish trend describes a potential trend continuation if we finally see a breakdown of the Neckline around JY127.5 in the new week.
vi. In as much as anywhere below key level appears to be a comfortable area to sell considering current structure, it is advisable that we hold and wait for a breakdown of neckline to join the potential decline... Trade consciously!😊
Trading plan: SELL confirmation with a minimum potential profit of 350 pips.
Risk/Reward : 1:5
Potential Duration: 4 to 8days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored... I shall be sharing a video of how I am going to take advantage of this trade if the price goes as planned on my new jou tube channel.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
