In previous technical analysis of ours about EURJPY in D1 time frame we posted our bearish signal on 12th June with our major supports pertaining along with our upper trend line keeping EURJPY in dovish pressure. We were expecting a breakout below our daily support three but the over sold conditions under H4 time frame had brought us with a short term hawkish trade over the pair. RSI in H4 and D1 are almost in the same zone i.e 30 while MACD in D1 is still showing strong signs of bearish momentum while H4 is gradually portraying shift of momentum to the bulls. In H4 according to our count - EURJPY is making final 5th wave of smaller degree which will find its end on our DS3.  According to our previous analysis there still might be space for forming last leg, marking lower low which will provide a higher degree of correction further. 

BULLISH AND BEARISH OPPORTUNITIES/ POSSIBILITIES :

In current market scenario we are focused on a short term bullish trade with our Stop loss at 129.47 but on the safer side lets make it 129.30 in terms of price action and taking profit would be 131.042. The short term targeted destination is based on our EMA50 and EMA200. This zone is going to be a selling zone again in regards to the last 5th impulsive leg being formed but focus would be on our near term strong resistance at 131.10. A breakout above our monthly pivot i.e 132.00 will mark the continuation of bullish rally.  A breakout below our support at 129.30 will drive the pair towards 128.76 and 128.15 support lines.  The 50% fibb level will provide a strong support and an upthrust to EURJPY with bullish sentiments - back to its point of breakout i.e 130.00 and above. Focusing on key price action will be our utmost priority so one can cash the opportunity of RSI and MACD correcting its oversold conditions. 

EURJPY H4

Jul 16 2021