EURJPY
farhan fazal
EURJPY·
Aug 19 2021
Take Profit +1.77%
Holding time 14d4hr
128.204
Entry price
130.471
Take profit price
MARKET FORECAST :
According to our analysis published yestarday i.e 18th Aug, the market has hit our stop loss but not with a strong bearish confirmation below 127.80 in order for us to determine its next destination as our 38.20% fibb retracement level i.e 127.0. In daily chart , the market has completely reversed its gains which started from 25th Feburary this year along with creating a lower low. In our previous market forecast, 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 but is reversing from our 50% fibb retracement level. 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.
BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :
Blame it on Biden or on Boris? The chaos in Kabul has prompted a lively debate in the British parliament that will likely continue for long days. In currency markets, the most recent downfall of GBP/USD can be easily attributed to America's central bank – but it would be hard for the pound to recover.
The Federal Reserve's meeting minutes from its late July decision have shown that there is growing support for tapering the bank's bond-buying scheme already this year. That has sent the dollar higher across the board.We are expecting Euro versus Japanese Yen to provide us with a hawkish move towards exponential moving average 200 in daily i.e 151.67. Keeping all the aforementioned factors in our market forecast above and the high supply demand zone at our current market prices are suggesting to position our buys at 128.00, while a breakout below would lead us 127.0. The oversold conditions in one hour, four hour and daily chart are all pointing at bullish reversal to create a sustainable growth.