Currently, EURJPY is in a downtrend on higher time frames of daily and weekly. We will look for an intraday setup for a short position in the technical analysis.

Market structure: As it can be seen in the chart of EURJPY that market had previously broken the support level which has now turned into a resistance. This indicates market forming LH’S and LL’s.

Also at this resistance, the resistance level has a confluence with a descending trendline.

At this level, we will be looking for shorts based on the market structure.

Retracements: Currently, market tapped the Fibonacci retracement level of 61.8%. This area confluences with the resistance level. In retrospect, we usually look for the golden retracement area around 75-78.6% for sniper entries. But sometimes, 61.8%, if aligned with the resistance, is equally strong to push the market down.

Trendline: We have two trendlines in play. The first trendline was a descending trendline which confluences in the resistance area along with the retracement level. This gives us 3 confirmations at a level to go short. Apart from this, we also have an ascending trendline, which has triggered the breakout sell.

EMA: Both EMA’s have a bearish bias as both the EMA’s are above the current market. At the resistance level, we have a retest of the EMA 50 level. This solidifies our added confirmations of 3 confluences. This retest may push the market down to the support level at 130.

RSI/CCI: Both oscillators have moved away from their over-bought conditions. RSI has already broken the ascending trendline which depicts a continuation of a bearish move. Now, RSI has got in the bearish level of 44, below 50.

CCI is at -39 right now. Below 0, we can be confident CCI confirming bear pressure.

In this intraday setup, we have 5 confirmations: resistance, retracement, trendline test, ema test, rsi breakout. When such setups appear, the win rate is risen up to 75%-80%.

EURJPY solid for sells

Jul 13 2021