After a dip in EURJPY, we will be looking for the buys.

After a dip on EURJPY, the support level at 128.70 stalled the bearish move. This support is aligned with all major time frames and strong enough to push the market back up. The formation of structure currently is HH and HL’s, forming a bullish structure. We would be looking at buys from the support level, till the resistance level of 129.70. The reason for this support being strong is the mere fact of the times this level has been tested.

Earlier, there was a descending trendline breakout buys. After the breakout buy, the market retraced back to the support level, which validates the second confirmation of the breakout. Currently, there is another confirming descending trendline formed. Market is currently below this trendline. We could also enter the market after this trendline breakout buy.

The retracement level of a golden level of 75-78.6% has been tapped in confluence with the support level. With the solid confirmation, we can be have a higher probability for the market to continue up.

Both the EMA 50 and 200 are in a bearish death cross and are still above the prices. After the breakout of both the EMA’s, the market rarely retested the EMA and is due to another retest for a correction. 129.70 is the resistance level where we might validate the confluence of the EMA with the resistance. This will gel in with our profit targets.

The oscillators we use are the RSI and CCI. Both the oscillators bounced back from the over-sold region and are headed towards the neutralized levels. Right now, there is enough window for the market to move towards the neutral level.

The support level on EURJPY is something we would be looking for to go long at. At this level, we have two confirmations plus one previous confirmation from the descending trendline breakout buys.

EURJPY buys from 128.70

Oct 01 2021

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