Since the Afghanistan crisis emerged, Yen has been the safe havens for institutional investors. The strength of the Yen brought the EURJPY down. We will analyze the pair on H4.

- Market structure: Market structure on EURJPY is bearish. Market tapped into a higher time frame support level, which also happened to be aligned with the h4, at the price of 128.30. EURJPY has a minor resistance at the price of 128.75. Once this resistance is pierced and retested, the h4 trend will shift to the bullish bias. Ideally, we will wait for the market to tap back at the support level to form a double bottom. At that point, we will position a long order.

- Trendline: There are two trendlines in play on EURJPY. The first one is a descending trendline, which was broken and validated by candles opening and closing above it. This trendline may not be as strong as it usually is, due to the fact that the second gap of the pivot points is not enlarged compared to the scale of the first one. The second trendline is a support trendline, which was faked out and market re-entered the territory above the trendline. This test gives us a second confirmation with the support.

- Retracement: The golden retracement level of 75-78.6% aligns with the support and is at a price point of 128.35. As the trendline has induced the breakout buy, the retracement will be ideal for us to go long.

- EMA's: Both the EMA’s are bearish at the moment. The market has retested the EMA 50 multiple times unlike the EM 200. This is the reason we will target the retest of EMA 200 as our profits, because it has not been tested recently, and secondly, it will align with the resistance level.

- RSI/CCI: Both oscillators pulled back up after touching their over-sold region. Currently, RSI is at 44 and CCI at 70. This depicts the RSI still needs to break through the 50 level to turn bullish, whereas CCI, is already bullish. We have a vacuum of 80 points on the CCI till it enters its over-bought zone.

EURJPY decent buys from 128.35

Aug 18 2021

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