EUR/JPY Forming A Bullish Reversing Pattern on the H4 Chart
EUR/JPY retraced lower on Tuesday, but the pullback ended at MAs
On Tuesday we decided to open a buy forex signal in EUR/JPY. This forex pair had been trading on a bullish trend since early May, when the Euro made the big reversal, pushing around 12 cents higher since then. But, on Tuesday we saw a pullback lower and we decided to open a buy signal.
Last week, this pair went through a deeper pullback lower, with the price falling below moving averages. But, EUR/JPY reversed back up again and moved above the moving averages. Both, this week EUR/JPY reversed back down again, luring us into this trade.
We decided o open a buy forex signal at the 50 SMA (yellow) which had been providing support for this pair before. Although, the declines continued lower, but it ended at the 100 SMA (green). Now, a bullish reversing pattern has formed on the H4 chart, with MAs providing support, while a number of reversing signals have formed now. EUR/JPY pushed 30 pips higher earlier today, but the climb has stopped now. We’re hoping that the bounce comes now, since we are long, but at least the MAs are holding well as support.
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