- Market structure: EURJPY is in an uptrend right now, holding the, 129.15 support level. This level has been tested only once. Market was unable to break this previously low due to which we ascertain the continuation of the bullish move. We will wait for the market to leave the support level with candles opening and closing above, and then will take a long position at the retest of the support.

- Trendline: The descending trendline has been broken just now with the force of a bullish candle. This trendline will be validated as breakout buys after the candles have opened and closed above. After the validation, we will wait for the market to come to the minor retracement levels to go for a long position.

- Retracement: At the support level, we have a retracement level of 61.8%, which is a major retracement level. Since the trendline has pending validation on the breakout buys, once its validated, we will wait for the market to test the minor retracement level of 75-78%. These levels will also confluence with the major support level.

- EMA's: Both the EMA’s are above the current market price, which means they are indicating a bearish bias. The matter of the fact remains that both of these EMA’s have been broken but not yet retested. If our long position is triggered, first target profit will be at the retest of the EMA 50 and the second one will be at EMA 200.

- RSI/CCI: Both the oscillators had tapped the over-sold range and formed a divergence buy. When both the oscillators form a divergence, the probability of the direction is increased significantly as in this case. It is also to note that a trendline breakout buy has occurred on CCI, which means more bullish pressure on the oscillator.

EURJPY moved up from a solid level of support with confluence of the retracement. Now that the trendline has been breached, we will wait for the retracement to take a long position.

Long positions on EURJPY

Aug 04 2021