Could #EURJPY go long?
As the price sits at minor support, we take a look at three trading patterns we can look for in order to take a long position.
Watch the video to find out more…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we will take a look at EUR/JPY. That could be a potential long opportunity setting up.
I want to go over this, and we can see, here, that the price is in a slight uptrend. The market is currently making those slightly higher highs and higher lows on the daily timeframe.
Suppose, you go down into the four-hour timeframe. In that case, you can see that the market is making higher highs and higher lows. What happened recently on the four-hour timeframe, in particular, is that the price has created a new high and is retesting the previous breakout high. Usually, when the market does this, I look for potential continuation patterns on the lower timeframe.
If I now go into a 15-minute frame, what I would be looking for is a change in cycles. There are multiple ways that the price can do this. We either like to look for double bottom patterns, which would be more of the same low there, or we could look for inverse head and shoulders patterns where the market will find support at the left shoulder, or we could look for complete changes in a cycle in the market breaks, retest, and continue up, like so.
Looking at this, here, on the left-hand side, we have a couple of different options. Now the double-bottom isn’t out of the window. But at the moment, it looks to me that the price is currently pushing to the upside.
So, there are multiple options: we can look for the complete change in cycle, which would be this pattern in here, where if I drag that up, you can see that what we’d look for is the price to push down, push lower, make a new low, change cycle, then form a higher high. That’ll allow us to buy on the 15-minute, and pull back into these previous structure highs, or at least look to buy the breakout, which stops below the lows there.
An alternative could be the double bottom pattern. What we would be looking for is the price to push back down, retest the previous lows that we’ve got here, around 121.30, and then a break to the upside.
The third pattern we could look for is an inverse head and shoulders pattern where the market could retest or rally up and retest this high, reject, come back, and retest this head and shoulders, left shoulder, and then push to the upside.
Either way, we’re looking for some change in cycle on this 15-minute timeframe for a buying opportunity.
If I were to get that buying opportunity, the first targets would be this previous structure high, through here. Second targets I’d be looking for are previous all-time highs. I’m looking at these high swings on the higher timeframes, at the four-hour daily swing highs, which are around this 124 level there.
There’s a lot of room to go if we do get that change in cycle on this timeframe. Have a look at these patterns. Please look at how you can implement them at key support and resistance levels and go from there.
I hope you enjoyed this video update, and I’ll catch you in the next one.
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