According to our analysis published on 12th July, we gave a bearish signal on EURJPY at 130.90, targeted destination 128.84 while providing strong dovish sentiments on the pair that it might lead to 128.20 where we have our exponential moving average 50 in weekly time frame along side 50%fibb retracement level. We anticipated this fall based on EURJPY creating a strong divergence pattern with the help of RSI in May and marked an end to the bullish impulsive structure. Another reason was that the market was in a state of deep correction but eventually ended with a minor degree of correction at 129.65-129.94 which brought the pair into over sold condition under H4 and H1 intraday time frames. EURJPY was able to quickly recover and corrected its RSI under all the intraday time frames and landing itself near the daily and weekly pivot followed by a dovish rally in accordance to the levels formed by our major bearish channel.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

In our market forecast above, we mentioned some key factors and indicators in daily that are calling out loud for a bullish reversal in shape of hawkish correction to stabilize its oversold conditions. The relative strength index in daily moved below 30 followed by a heads up rather than falling into further and deeper oversold conditions in higher time frame. EURJPY made a decisive move of a few pips lower than yestardays low and is now creating a bullish engulfing candlestick most probably. The pair standing above exponential moving average 50 and 50% fibb retracement level in weekly along side all the aforementioned factors are indicating for a sharp bullish correction in EURJPY, so we will be positioning our buys from the current market price towards 129.50 at first, after that the structure formation and accumulation in that zone will decide our further stance.  

EURJPY

Aug 18 2021