EURJPY Long/Short Setup - Detailed Analysis

According to last week’s EUR COT Report, we can see that it remains with really strong “long” contract positions. It is expected that the EUR keeps its upward momentum.

Price moved exactly according to our previous analysis towards the 124.000 area.

Now after hitting the psychological 124.000 zone in the 4H critical area, we can expect 2 ways the price could move. In both we expect the price to reach the monthly critical zone right above the 125.000 mark.
1. Price will receive support from the 4H critical area that we are in right now and move towards the monthly critical area near 125.200.
2. Price will fall to the 123.000 mark and then it will receive support for a move towards the 125.200 monthly critical.

After price reaches the 125.200 zone, we can expect a correction towards the 4H critical near the 124.000 mark. Buy pressure will come in and the price will go for a second top near the 125.200 zone. After a second attempt, we can expect a strong correction towards the bottom trendline near 122.000. It will not only enter a psychological zone, but it also aligns perfectly with the 0.618 Fibonacci level and with the 4H critical zone.


Happy Trading!