EURJPY seems to form a perfect long position. But what needs to be assessed is the fact, lower lows and lower highs have been formed for a retracement purpose and the market is standing at the support level priced at 148.80. That being said, we are looking for a long position to cater to the buying pressure after we see a bullish price action. The market has a bullish trend on the higher time frames with the formation of higher highs and higher lows.

The ascending trendline has broken out for sells but the structure remains to be broken towards the selling side. On the other hand, we have a descending trendline which is about to be broken out for buys after a mere mark up.

The retracement level we are looking at is priced at the support and is in confluence. The retracement level is 61.8%.

The EMA 50 is bearish and the market has the potential to tap it back up as a retest or even break through it for continuation upwards.

RSI is at 43. It is above the over sold region. We need to wait for the oscillator to partially tap the over sold region from where we can align the technical factors and see the market move up.

Sellers are going to be liquidated

Jun 01 2023