Analysis of EUR/USD, USD/JPY and EUR/JPY to determine buy trade in EUR/JPY | Forex Fund Manager
EUR showed significant strength yesterday, here is what all we observed on major pair, EUR/USD:
Almost all major currencies, such as GBP, AUD, NZD, CAD and CHF, fell against USD yesterday but EUR rose
EUR/USD has already been trading above MACD predictor
It has been trading in an up trending channel
It looks like butterfly is in formation.
Along with EUR/USD, USD/JPY showed a significant bullish move yesterday as it made an engulfing candle pattern on Daily/D1 time-frame:
Since both EUR/USD and USD/JPY were bullish yesterday, we tried to find out an opportunity to buy EUR/JPY today and here is what all bullish factors we observed on Daily/D1 time-frame of EUR/JPY:
We see Bread & Butter chart pattern here. Following bullish thrust, market usually moves in direction of the thrust to 61.8% of the fall. This is called a Bread & Butter Buy Trade.
The screenshot of H1 time-frame of EUR/JPY below describes how exactly and when we entered buy in EUR/JPY.
Note that we have moved Stop Loss (SL) to Break Even (BE) point.