@Colibritrader

Dear traders,

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.

Happy trading,

Colibri Trader

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