EURJPY KEY🗝️LEVELS TO WATCH👀 AND WHY🤔

3 mag

Hello awesome traders! It's been quite a ride with EURJPY since April 10, 2023. Let's delve into the charts and analyze some key levels to guide our trading decisions.



Weekly Chart Analysis:
The weekly chart reveals a symmetrical triangle pattern, which I previously shared on TradingView back in April 2023. This chart holds significance as it demonstrates a breakout on April 10, 2023, with the price remaining bullish ever since. I've highlighted two crucial Fibonacci levels: the 38% retracement level at 154.142, acting as support (marked in red), and the 100% extension level at 163.490, serving as resistance (marked in blue). Over my decade of trading experience, I've learned that these Fibonacci levels not only serve as potential targets but also as important support and resistance zones. Fibonacci analysis is instrumental in identifying these key levels.

Now, as we examine recent price action, we must determine our trading bias. The 162% Fibonacci extension level at 172.687 hasn't been triggered yet. However, the 100% level at 163.490 may now be acting as support, indicating a shift from resistance to support. This shift influences our trading decisions, potentially favoring a bullish outlook.




Daily Chart Analysis:
Zooming into the daily chart, we observe a three drives pattern unfolding. Here, we apply Fibonacci retracements instead of extensions, using points A (160.215) to D (171.605). Currently, the price is hovering around the 62% retracement level (AD: 164.603), slightly above the support at 163.490. Additionally, the 78% retracement level (AD: 162.640) serves as a potential support zone. This bullish pattern on the daily chart aligns with the bullish sentiment seen on the weekly chart.

On the H4 timeframe chart, we're witnessing further bullish momentum. Moving forward, it'll be crucial to monitor whether the price holds above these support zones. If so, we may anticipate a continuation of the bullish trend towards the 162% Fibonacci extension level at 172.687.

Overall, by integrating Fibonacci analysis across different timeframes, we gain valuable insights into potential price movements and can make informed trading decisions. Let's keep a close eye on these levels and adjust our strategies accordingly. Happy trading!