EURJPY | Perspective for the new week | Follow-up details
It's been 3 weeks since my last publication on this pair and my bias remains bullish (see link below for reference purposes). Rejection of Y130.500 a couple of times at the beginning of the month (September 2021) resulted in a further decline which tested the Y128.000 zone to form a double bottom structure with hopes of Neckline Breakout in the coming week(s).
Even though the currency pair was under the control of the sellers in the past two weeks, the rejection of Y128.000 for the second time in the space of 30days is a reflection that the Demand is strong at this juncture in the market.
Tendency: Uptrend (Bullish)
Structure: Breakout | Supply & Demand | Reversal pattern (Double Bottom & Trendline retest)
Observation: i. Bearish Trendline: A visual representation of a line drawn over pivot highs revealed the prevailing direction and speed of price in the last two months.
ii. With selling pressure respecting the Bearish Trendline since June 2021, the sudden Breakout of Trendline on Thursday (25th of August 2021) appears to have incited the idea that sellers are gradually losing their momentum hereby giving room for buyers to take their stance.
iii. Following the rejection of Y130.500; we witness a confluence at Y128.000 (a psychological level) which is characterized by the retest of Bearish Trendline and Demand zone to evolve into a Double Bottom pattern.
iv. The appearance of a Double Bottom (an extremely bullish technical reversal pattern) at this juncture in the market is a positive sign to go LONG should continue to remain above the Demand zone (Y128.000).
v. Double Bottom: is a technical charting pattern that emphasizes s a change in trend and a momentum reversal from prior leading price action.
vi. Y128.000 level can be identified on the chart as a significant level that has held price strongly "supported" ( Demand zone ) since March 2021 hereby giving me a conviction that another bullish momentum is right at the corner with confirmation at Breakout/Retest of Neckline @ Y130.500.
vii. In this regard, I have identified a Key level @ Y129.000 to be a yardstick for opportunities in the coming week(s) as anywhere below this level negates the narratives.
viii. For those with an extremely cautious approach to trading, a Breakout/Retest of Neckline @ Y130.500 should be the most appropriate confirmation to join the potential rally... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 350 pips.
Risk/Reward: 1:5
Potential Duration: 12 to 20 days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Even though the currency pair was under the control of the sellers in the past two weeks, the rejection of Y128.000 for the second time in the space of 30days is a reflection that the Demand is strong at this juncture in the market.
Tendency: Uptrend (Bullish)
Structure: Breakout | Supply & Demand | Reversal pattern (Double Bottom & Trendline retest)
Observation: i. Bearish Trendline: A visual representation of a line drawn over pivot highs revealed the prevailing direction and speed of price in the last two months.
ii. With selling pressure respecting the Bearish Trendline since June 2021, the sudden Breakout of Trendline on Thursday (25th of August 2021) appears to have incited the idea that sellers are gradually losing their momentum hereby giving room for buyers to take their stance.
iii. Following the rejection of Y130.500; we witness a confluence at Y128.000 (a psychological level) which is characterized by the retest of Bearish Trendline and Demand zone to evolve into a Double Bottom pattern.
iv. The appearance of a Double Bottom (an extremely bullish technical reversal pattern) at this juncture in the market is a positive sign to go LONG should continue to remain above the Demand zone (Y128.000).
v. Double Bottom: is a technical charting pattern that emphasizes s a change in trend and a momentum reversal from prior leading price action.
vi. Y128.000 level can be identified on the chart as a significant level that has held price strongly "supported" ( Demand zone ) since March 2021 hereby giving me a conviction that another bullish momentum is right at the corner with confirmation at Breakout/Retest of Neckline @ Y130.500.
vii. In this regard, I have identified a Key level @ Y129.000 to be a yardstick for opportunities in the coming week(s) as anywhere below this level negates the narratives.
viii. For those with an extremely cautious approach to trading, a Breakout/Retest of Neckline @ Y130.500 should be the most appropriate confirmation to join the potential rally... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 350 pips.
Risk/Reward: 1:5
Potential Duration: 12 to 20 days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Trade smart. Trade consciously
