EUR/JPY has been bearish on the H4 chart. The price produced a bullish inside bar yesterday on the daily chart. Today’s first H4 candle came out as a strong bearish candle, which made a breakout at consolidation support. If the H4 chart produces a bearish engulfing candle making a new lower low, the sellers may go short on the pair to grab some green pips. Let us have a look at the H4 EUR/JPY chart.
This trade idea was generated by our powerful Elite Swing Trader System on an H4 time frame.
EUR/JPY Daily Price Forecast – 21st Jan 2020
The chart shows that the price makes a breakout at the level of 122.065. The pair is trading below the level as of writing. The current H4 candle has been a bullish corrective candle. If the candle closes within the breakout level and the level produces a bearish engulfing candle closing below the level of 121.870, the price may head towards the level of 121.500 with good bearish momentum. Let us now have a look at the trade summary…
- Sell Stop Order: 121.889
- Stop Loss: 122.274
- Take Profit: 121.412
If the H4 traders get the opportunity to go short, the daily candle may close well below yesterday’s daily candle. That candle pattern may attract the sellers to go short on the daily chart as well. The trend reversal candle came out as a bearish engulfing candle, which is a sign that the price may continue its bearish journey for a while. The price may find its next daily support at the level of 120.575. This means the pair may make a massive bearish move on the H4 chart if it produces a daily bearish candle today. Let us wait and see how it goes in the end.
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