On February 7/2021 I published an article calling for EURJPY to advance higher -> EURJPY : Expecting More Upside . In that article I explained why I entered the first BUY entry (green) at 126.22.
In that same article I posted a second trade setup calling for another rally higher once we see a pullback towards the support/resistance level (blue). If blue support level holds we would expect a rally to newer higher highs. Below is the chart with the second trade setup that was posted in the February 7 2021 article which explains the bullish view.
EURJPY 1 Hour Chart February 7 2021
The chart below shows on February 9 2021 price makes a pullback to the blue support/resistance level as expected and was also met with a bullish divergence pattern (pink) which formed in the same support level. Both the support level and bullish divergence merging together with the 200 moving average dynamic support was all the signals I needed to enter the second BUY 126.74 entry (blue) on the break above the descending trend line with stops placed at the previous higher low 126.07 level. Only a break below 126.07 will invalidate the bullish higher high/higher low sequence.
EURJPY 1 Hour Chart February 9 2021
EURJPY eventually rallies higher and on February 15 2021 price hits the 1st BUY green 1:3 RR target at 128.11 from 126.22 entry for +189 pips and also hit the 2nd BUY blue 1:2 RR target at 128.08 from 126.74 entry for +134 pips.
EURJPY 1 Hour Chart February 15 2021
If you followed me on social media @AidanFX you too could have caught the EURJPY move higher. We at EWF never say we are always right. No market service provider can forecast markets with 100% accuracy. Only thing we at EWF 100%, is that we are RIGHT more than we are WRONG.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on social media for updates and questions> @AidanFX
At Elliottwave-Forecast we cover 78 instruments (Forex, Commodities, Indices, Stocks and ETFs) in 4 different time frames and we offer 5 Live Session Webinars everyday. We do Daily Technical Videos, Elliott Wave Trade Setup Videos and we have a 24 Chat Room. Our clients are always in the loop for the next market move.
Try Elliottwave-Forecast for 14 days FREE !!! Just click here –> 14 day FREE trialBack