EURJPY (10-Jan-2021)
The price action has hit the monthly chart's downtrend line.
The price action has pierced through the monthly chart but it did not stay above the trendline.
Daily chart shows that the price action has stayed above the trendline.
Looking at the 4H chart, the price is forming lower high, supported by the previous high.
1H chart does not seem good to enter into the trade at the moment.
Let's observe what the price action tell us to do.
Note
From 4H chart, the price action is showing some sign of support at the trendline.
However, I am looking for a higher high formation at the shorter time frame to get confirmation that the uptrend is still intact.
Patient is the key. No rush.
Sometimes, doing nothing is better than doing something in trading.
Note
Lower time frame, which is the 1H chart.
There is some sign of support but there is no formation of lower high.
Thus, I suspect that the public has not formed an opinion on this currency pair.
So the direction is not being decided yet.
We need to trade together with the crowd in order to earn money.
Note
Daily Chart still being pressured downwards.Need to wait for opportunity to come, since my plan is only to trade when it is up.
So be patient. Unless want to trade short term, which is to short it.
But, I am not willing to do this, as it means I am taking unnecessary risk.
I will prefer to preserve my money to risk it on something that I know, than things that I don't know. If I trade with something I don't know, it means I am being an impulsive trader.
Note
Lower high and lower high is formed.
Short term is down trend.
Since I am looking to buy, and I can only earn money when the price is bullish, I will prefer to wait during this period of time.
This is to preserve my profit as well as my capital.
To stay consistently profit in trading, there is no need to trade everyday.
Just trade what we know, and earn those money.
We are the expert for that particular market behavior. That's how we earn that money.
There is no need to trade all the market pattern. We have limited time and we will never be expert for all market.
Note
Daily chart above shows the resistance is strong and the price action is going down, and forming lower low now.
Note
In the 4H chart as well, it is showing the price is forming lower low. We will need to observe patiently to plan our setup to buy since it is bullish in the bigger picture.
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Daily Chart:Lower low is being formed. It seems like the short term downtrend is strong. Stay away first until can see clearer picture.
Note
4H ChartLower low is formed. There seems to be no ending of downtrend yet.
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