Earlier, we had to take a loss on EURJPY as market faked out below the support level. Now, we are looking at another long position after market broke out from the resistance.

- Market structure: Market structure on EURJPY is bullish now, given the resistance breakout buy has happened. Market tapped into a higher time frame support level, which also happened to be aligned with the daily, at the price of 128.30. EURJPY has a minor resistance at the price of 128.75. This resistance was breahced,hence the h4 trend has shifted to the bullish bias. The breakout validation is confirmed by the H4 candles opening and closing above the resistance. Now that this resistance has become support, we will wait for the market to tap this area to go long.

- 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 will be considered as a trendline breakout buy. Beside the candle validation of thie trendline breakout buy, we also have a resistance breakout, which correlates to the validation of the trendline. The support trendliine formed a bullish divergence on the price. The bull pressure had been absorbed in the market. 

- Retracement: The golden retracement level of 75-78.6% is minutely above the support level and is at a price point of 128.15. As the trendline has induced the breakout buy, the retracement level of 61- 75% will be ideal for us to go long.

- EMA's: The EMA 50 has just been broken up and is being retested at the resistance become support level. Whereas, EMA 200 is still bearish and needs to be retested. The EMA 200 could be our potential target given it lies with the resistance level.

- RSI/CCI: Both oscillators pulled back up after touching their over-sold region. Currently, RSI is at 65 and CCI at 95. This being said, both have rooms to move up towards their over bought regions before we experience a pull back for neutralization. The support trendlines on the oscillators formed the divergence in lieu with the price action.

EURJPY is a good setup but we won't be a having a retracement confluence completely folded within the support. Therefore, it only gives us 2 confirmations at this current level to buy.

EURJPY buys from 128.75

Aug 23 2021

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