The EURJPY has soared to a new 16-year high since 2008 after breaking and back testing its March 2023 lower high trend line. Is the 170 level next?

My second Finlogix analysis today goes to the EURJPY pair.

After a convincing LH trend line breakout, my April 23 bold long trade plan has hit its take profit level:

https://www.finlogix.com/analysis/20240423/eurjpy-intraday-analysis-and-trading-plan-for-april-23-2024

An updated 2 wins and 5 losses overall record.

There are no further European and Japanese major economic reports this Friday after the BoJ has kept interest rates on hold leaving the Japanese Yen fragile and weakened against the Euro.

Re-assessing EURJPY’s high timeframe candles:

Yearly Candle: Last check is a Green Body with a Diminished Head Wick now an Imperfect Green Marubozu

Monthly Candle: Still a Green Body with a Longer Tail Wick since last check

Weekly Candle: Last check is a Small Green Body with a Longer Tail Wick now a Big Body with a Longer Tail Wick

Daily Candle: : Both yesterday close and current are Green Body with longer Tail Wicks

With the dovish tone and lack of interventions from the Bank of Japan, the Euro continues to soar against the Japanese Yen to a new 16-year high.

The EURJPY is hovering at the current levels never seen since 2008.

Technically, when we talk about larger or higher time frames, 170 level is a strong resistance and this might really trigger an intervention from the BoJ not just verbally!

The sellers initially tried to send the price lower in the 166 sub levels during April 25 closing sessions but after the BoJ released their statements, the bulls have completely taken over sending the price to a new multi-year record.

Since the former March lower high trend line is broken and back tested for good, we can expect the cross pair to target 170 in a few weeks.

There’s liquidity runs happening on the 4H chart which the EURJPY sellers can’t help but close their short positions.

Even if there's a new price discovery happening, I am not going to jump in and create a long position but will short the 170 level to be safe.

I put a 100-pip willing stop loss while taking a 3 to 1 RRR short swing trade set up.

My bias is that the 167 previous strong resistance will become an immediate pullback support once the 170 level is breached.

This is what I see for the EURJPY for now.

All trade ideas I share are my own views and for my own trades only.

Copy trading and trading directly involve risks.

EURJPY Intraday Analysis and Trading Plan For April 26, 2024

Apr 26 2024

1

1