FOREX Chart Of The Day: Will EURJPY Trend Higher?
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we’re going to take a look at EUR/JPY. This was one of the charts that were posted in the comments section on YouTube. So, thank you for the suggestion. I’m just going to go through EUR/JPY. I’ll talk about the other JP Yen pairs another time. But I do like the idea of selling JP Yen. I like the idea because the market seems to be favoring at the moment.
We can see that USD/JPY, in particular, has changed trends in the daily time frame. So, it could be a sign that the JP Yen is going to weaken further.
So I do like the idea of selling, and that’s another reason why I like the idea of buying CAD/JPY. I’m just waiting for that one to play out. But EUR/JPY could be another good alternative. We can see this trend is very strong, here.
If we go to the weekly time frame, we can see that the price had a bearish weight last week. But it’s retesting the previous high, through here. So, we could see another rally in the price of EUR/JPY.
The one thing I do like is if we look at this daily timeframe, we have a nice trend – the market is making higher highs and higher lows. It has a little bit of a deeper retracement than I would typically like to see in the market. But nonetheless, we started to find buyers once again. The market is starting to rally up.
We could see another retest of this 126.70 area because, technically, we’re still trending to the upside. So, it is favoring the buyers. The only way I’d even look to consider shorting is if the market just fell away and broke into new lows. But at the moment, the market is favoring that JP Yen weakness.
If I go to the four-hour time frame, we can see that the four-hour trend is now matching our daily trend. So, we see it was in this downtrend, all through here. Now, it’s starting to form this higher high and a bit of a breakout. You can look for these long opportunities on EUR/JPY now because we’ve got the daily bias in trend, and the four-hour bias in an uptrend as well. So looking at this now, what I’ll do is look for key support and resistance levels. So, we have this previous structure high, just in here, and we have this sort of zone, through here, where the market has found multiple support and resistance in the past. The market is kind of trading between that point right now.
So, the way I’d look at this is either wait for some nice bullish four-hour candlestick, which suggests that the trend is going to continue to the upside, or you can look for a change in trend on the lower time frame.
So, I like to use the 15-minute time frame and what I’d be looking for here is any change in the 15-minute trend. You can see here that the 15-minute time frame is going against that four-hour trend and daily trend at the moment.
Now, if that changes and switches then breaks above this high, then it’ll be matching up on the 15-minute time frame as well, and you can look for those opportunities, which will give you a really nice healthy risk-reward ratio. It’s a very low-risk, high reward trade, up into that 126.70 area, or even just into this previous structure high, here, on that four-hour time frame.
So, EUR/JPY could be an option for you to look for this trading opportunity in here today. Wait for that change in trend, or as I said, watch a four-hour change in trend and go from there.
I hope you enjoyed this video update. If you did, please like and subscribe to the YouTube channel for some trading content, and I’ll speak to you soon.
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