FOREX Chart Of The Day: EURJPY Short or Long?

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 of interest from the comments sections on our YouTube channel. I want to cover what’s going on here.
I like the idea of buying EUR/JPY, and the reason is the fact that the market is in a slight uptrend – again, higher highs and higher lows. I’m expecting the markets to come and retest this previous swing high, here.
I like to see these nice progressive daily higher highs, and we can see this candle, in particular, has broken through this previous high. We have to ignore what this candle looks like at the moment because it hasn’t finished yet, it hasn’t closed yet. Still got another six or seven hours to go before we get that close.
What we can do is go to that four-hour timeframe and look for areas of support and resistance, and we can see that the price is approaching another previous structure high. If I look here, you can see that the market has formed a new high. What we would be looking for is a pullback continuation trade-off of previous structure points. What I’m going to do now is place a box on top of that high to the candlestick closes here and then dive into a 15-minute timeframe for a potential entry.
So, we can see that the 50 and the 200 moving averages are nicely in line with the four-hour pulling back. And when the four-hour pulls back, we get the market forming lower lows and lower highs. Then, you see the markets getting lower. That would suggest that we need to wait for a potential bullish move.
I want to wait for the price to come back into the key support level; the price is at the supporting level. I want to wait for a couple of conditions, and the first condition is my RSI in an oversold condition – yes, it is. Now, I need to wait for a change in the cycle, and that can happen in one or two ways: a double bottom pattern to the upside., it can be a higher low, and it could also be an inverse head and shoulders pattern at this point.
What I’m going to look for are potential long opportunities. Suppose we don’t get one of these patterns, and the markets start pushing to the downside, and we start trending lower. In that case, we’re not going to be interested in the position because it doesn’t line up with our bias at the moment, which is a potential long opportunity on EUR/JPY.
Everything to me is saying a little bit of upside with the fact that EUR’s quite strong at the moment.
Suppose I look at the daily timeframe, the daily close – the bullish yesterday – makes me feel like it’s going to continue to do that today. The four-hour timeframe is in an uptrend approaching this key supporting level. All I need to see now is the 15-minute to change cycle and get back into that uptrend, and when I see that, we can look for those long opportunities.
Keep an eye on some potential bullish reaction here on EUR/JPY. I feel like we could get a potential long opportunity.
Thanks for watching. Catch you on the next one.
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