To analyze EURJPY intraday or swings, we will analyze the H4 chart.

The market structure on EURJPY was bearish until recently; it tapped the support level at a major demand zone, in confluence with higher time frames. 128.60 were a key level, which was breached and market shot up without retesting it. Therefore we consider another retest of this resistance turn support level to hop on to the buys. With this scenario, market will start forming HH’s and HL’s.

There are two descending trendlines drawn. One of them has been breached with major force of bullish candle and closed above. This validates this trendline. The second one is incoming for the breakout buys. It is possible that market may test this trendline and take a retracement. Or, it can simply break it out.

The 75-78.6% retracement level is aligned with the support level. This gives us a solid confirmation for the buys, given that trendline breakout buys has taken place.

Both EMA’s were bearish until today; market broke the EMA 50 and due for a test. After we enter the buy position, the retest of the EMA 200 will be our profit target.

RSI is at 62 and CCI at 182 respectively. CCI at an over bought region and needs a correction in order to further push up. RSI has had a trendline breakout buy. In short, both the oscillators are in a bullish region and have a potential for further scale up after a correction.

EURJPY is a good setup given its retraced back to the 128.60 level. Once it does, we will get into our long positions till the profit taking of the EMA 200 retest. Given we have a had a major breakout buy on a trendline, we can be assured for a profitable long setup from our mentioned position on the chart. The risk to rewards on this is 1:2.75.

EURJPY longs from retracement

Sep 23 2021

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