EURJPY: Market Patterns Continue To Call The Move Higher

On August 21, I posted on social media: “Added Long/Buy EURJPY."

The chart below was also posted on social media, showing that bullish market patterns were visible and calling for a move higher. The bullish pattern (blue) triggered buy signals at the XA 0.886 Fib. retracement level, and the bullish AB=CD pattern (purple) triggered buy signals at the AB=CD level.

I called for traders to add EURJPY long/buys with a tight stop-loss at the X point of the blue bullish pattern. The bullish divergence pattern (pink) added more confirmation to enter the second buy target. The second buy entry triggered at 124.65, with the stop-loss at 124.30.

EURJPY One-Hour Chart August 21, 2020

The pair pushed higher and hit the 1:4 RR second buy target. A trend continuation divergence pattern (pink) formed on the pullback after hitting the 1:4 RR target, which signaled more upside was still in the works and to hold on to the second long/buy indicator. What also entered was the third long/buy signal at 125.48, with stops at 124.83 and looking for a 1:2 RR Target

EURJPY One-Hour Chart August 27, 2020

The pair eventually rallied higher and hit the 1:6 RR second buy target at 126.75 from 124.65 for +210 pips, and hit the 1:2 RR third buy target at 126.78 from 125.48 for +130 pips. The combined total was +340 pips and was still holding first EURJPY 123.98 buy entry.

Of course, like any strategy/technique, there will be times when the strategy/technique fails, so proper money/risk management should always be used on every trade.