EURJPY’s 4H 50-SMA came to the rescue in yesterday’s flash crash!

My first Finlogix analysis today goes to the EURJPY cross pair.

After the recent extreme price volatility, yesterday’s long trade has quickly triggered its stop loss:

https://www.finlogix.com/analysis/20240429/eurjpy-intraday-analysis-and-trading-plan-for-april-29-2024

An updated 2 wins and 7 losses overall record.

There is only one European economic report released on Monday that came in lower than forecasted and nothing in Japan.

Re-assessing EURJPY’s high timeframe candles:

Yearly Candle: Still a Green Body with a Longer Head Wick since last check

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

Weekly Candle: Last check is an Imperfect Green Shaven Bottom now a Red Long-Legged Spinning Top

Daily Candle: : Yesterday close is a Red Long-Legged Spinning Top current is a Small Green Semi-Doji

All Forex major and cross pairs linked to the Yen have proceeded to extreme volatility after suspected Japanese Government intervention.

The USDJPY alone hit 1990 high levels yesterday at 160 but a sharp decline has followed causing a more than 5-Yen move!

This is a swift yearly pullback at least.

The EURJPY has recovered back above the 167 mark after a strong rebound at its 4H 50-SMA.

This latest swing high and low move is a key retracement level to keep an eye on.

For now the 168-169 range are the immediate internal resistances.

The mentioned bullish weekly FVG yesterday has been holding up as well!

This is still a bullish sign for the cross pair.

Newly established supports have been found coinciding well with the weekly FVG and the 4H 50-SMA.

The challenge towards 1992 highs are still probable.

With no proven evidence of a Japanese Government intervention, I will still open a long position for EURJPY with the following new orders:

Based from the recent swing high and low points that are created yesterday, price is hovering in discount arrays.

So opening a long position now can be a good idea.

Still a 2 to 1 risk reward trade setup. Good luck.

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

Copy trading and trading directly involve risks.