Wednesday, February 5, 2020

Bullish Setup On EURJPY

Marco Tosoni

FХ Strategist & Financial Commentator

After a new top, set in the middle of January around 123 area, during the last three weeks, a strong drop started bringing the quotes right below 120, around an important area, where we can detect the last November bottoms, and the previous tops of September 2019.

Between January 27th and February 3rd, this pair has created an accumulation base with a narrow 60 pips range, before yesterday’s session, when a strong bullish acceleration, allowed Euro Yen to close on the daily top around 121 area.

In the first hours of today’s session, a moderate technical correction is taking place, that in my opinion it shouldn’t put under discussion the bullish scenario on this pair.

Taking a look at the RSI indicator we can appreciate how the bullish divergence that I showed in the video of the last January 27th has finally materialized…

and in case today Euro Yen will be able to breach the yesterday’s top, there will be excellent chances to go on with the bullish swing trying to reach the 2020 tops, towards 122.90.

The bullish scenario would change only in case of a daily close below 120, just below yesterday’s bottom.

As always I recommend to trade carefully and to plan at best every move. Have a good trading and see you for the next video.

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