The Pullback Is Almost Complete in EUR/JPY and the Trend Is Still Bearish - Forex News by FX Leaders
We are waiting for another reversing signal like the doji earlier this week

The Pullback Is Almost Complete in EUR/JPY and the Trend Is Still Bearish

Posted Thursday, May 16, 2019 by
Skerdian Meta • 1 min read

Earlier this week we had a sell signal in EUR/JPY which we opened as this pair was retracing higher during this downtrend, which started about a month ago. The retrace was almost complete but we decided to go short nonetheless, given the deteriorating sentiment in financial markets due to the escalating trade war.

The reversal took place after the price formed a doji candlestick on the H4 time-frame chart and the bearish trend resumed. But in the last few sessions we have been seeing another pullback higher and this pullback is almost complete again. The stochastic indicator is almost overbought.

Besides that, moving averages are catching up and they should bring an end to this pullback once they reach the price, or the price reaches them. By that time, stochastic will be overbought, which means that the retrace will be complete. So, we are following the price action in this pair, waiting for a reversing signal. Once we get it (pin/doji candlestick), then I will be persuaded to open another sell signal here.

 

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of