Last week I wrote about NZDJPY.
This pair has not done much and is pretty much in the same place where I analysed it at.
In the trading room, me and the other traders managed to get on a few great trades last week.
We were long EURAUD, EURJPY and DAX.
All of those positions were closed in profits.
Although, I am more careful trading around Christmas time, there are rarely setups that look too good to miss.
That was the case with the above-mentioned trades.
EURJPY Trading Analysis 20.12.2020
Today I am looking at EURJPY again.
This time, it looks more bearish than bullish.
There is a major supply zone at 126.50 and it looks like the price is having difficulties breaking through this zone.
On the other side, EURJPY formed a pin bar on Friday.
This is carrying bearish connotations and further increasing the chances of a potential reversal.
I will be looking for the price to confirm this bearish bias on the 4H chart with a price action candlestick.
The level of 126.50 looks like a good place to potentially short it if a candlestick confirms the bearish bias.
Word of caution: In case we do not see such a confirmation, I can expect the price to go higher. In this case, I will be looking for a bullish signal above the level of 127.00.