Four Bullish Pieces of Technical Analysis on EURJPY

There are multiple very interesting things going on here from a technical analysis perspective.

First of all we find that EURJPY has just gotten a bullish engulfing candlestick pattern. This is a bullish signal indicating that there is upwards power from the bulls, more so than the downwards powers we have just observed from the bears.

Secondly, EURJPY is near a horizontal area of support. The price has respected several support zones earlier on, and shown that it was very difficult to break through this area. I highlighted two areas of support here, with the level 2 area being the stronger one. After seeing a strong rejection towards the bears on hitting this first level support I still believe we can see an uptrend soon, but I charted the bottom support as well in case of a temporary downturn, I expect the price to find even stronger support there.

Thirdly, we find that the price has just been oversold. This means that there has been an unsustainable downforce that will soon need to be corrected. The last time this happened, the price has significantly bounced back up, as you can see in the chart.

Lastly, we find confluence. Because these three signals show us the same direction, the signal is becoming stronger. That's the reason why I suggest a long trade here with a stop loss tightly below the second zone of support. In case we invalidate this idea, we should leave the trade as soon as possible.

Follow me for consistent high quality updates, with clear explanations and charts.
Please like this post to support me.

- Trading Guru

--------------------------------------------------------------
Disclaimer!
This post does not provide financial advice. It is for educational purposes only!

Recent success story: