Since the end of June the pair has been moving in an upward trend and at that time made 430p in a northerly direction. The price has been falling for the last three days and a clear downward divergence has occurred between the MACD and price graph. Also, the MACD oscillator has created a maximum and its value is now decreasing, which supports the downward scenario.

EURJPY Daily – a bearish divergence

Going to H1 chart, we will notice that in the vicinity of 130.15 there may be a first demand response, and in case of overcoming this zone, the price may go down to 129.30.
Looking at the graph from the point of view of the EMA144 strategy we can see that the pair is under the average EMA144, which is the dynamic resistance level here. Only its breaking through can change the market’s attitude toward bullish and return to growth.

EURJPY H1 – average EMA144 is a dynamic resistance, broken may lead to return to growth

 

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Since 2010, he has been actively involved in the Forex market up to now. He is a supporter of Price Action and using as few indicators as possible. He believes that the simplicity of the system and consistency in its application is the best way to success in financial markets, and lack of patience is the most frequent cause of failure. Interested in classical systems based on Technical Analysis and in psychology - mechanisms that guide human behavior and conditioning decision making in trading.