FX:EURJPY   Euro / Japanese Yen
1st: Price touched strong resistance, resistance has been valid from 2008 showing strength in the level. Also, price rejecting level shows major sell orders (institutional order flow) in this area which should increase validation in the confluence.

2nd: Bearish engulfing pattern at the resistance level , not the best bearish engulfing pattern. But still valid as the previous candle was engulfed.

3rd: Bollinger band which is near there massive/strong resistance area , and also, clearly shows price action piercing the oversold area which validates the confluence.

Conclusion: Price action being around a strong level that has been validated from since 2008, rejecting the zone from the Friday close. And also forming a bearish engulfing pattern at and around the resistance level , as stated before not the best bearish engulfing pattern(reversal) but the reason why the validation is still taken into account is solely because of the strong level. Usdjpy             which is a positively correlated pair has hit a reversal, but this pair had more confluences which equals more validation.
Good analysis
+1 Reply
EN English (UK)
EN English
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out