A bearish trend could be beginning on EURJPY. We have several confluences:
4H Chart:
- Tenkan sen and Kijun sen angled down
- Kumo bearish and angled down
- Chikou below past candles and kumo
- Bearish price action
My Ichimoku scanner which uses the 4H and 1H chart is returning a bearish result. We also have relative weakness, as EUR in general is weak, JPY in general is strong, and EURJPY itself is falling faster than other EUR pairs.
We are near strong support, so it could still bounce up. The purpose of this idea is to get EURJPY on your radar, as a break of support could give you excellent R:R on a big move. You could either look to go short now based on good confirmations on the 5m or 15m charts. Or, you could wait for a break below past support at 137.836. It is also worth noting we are near the daily Kumo, which could also act as support. Hence why it is important to monitor the lower timeframes to judge the market situation.
4H Chart:
- Tenkan sen and Kijun sen angled down
- Kumo bearish and angled down
- Chikou below past candles and kumo
- Bearish price action
My Ichimoku scanner which uses the 4H and 1H chart is returning a bearish result. We also have relative weakness, as EUR in general is weak, JPY in general is strong, and EURJPY itself is falling faster than other EUR pairs.
We are near strong support, so it could still bounce up. The purpose of this idea is to get EURJPY on your radar, as a break of support could give you excellent R:R on a big move. You could either look to go short now based on good confirmations on the 5m or 15m charts. Or, you could wait for a break below past support at 137.836. It is also worth noting we are near the daily Kumo, which could also act as support. Hence why it is important to monitor the lower timeframes to judge the market situation.