Analysis of EUR/USD, USD/JPY and EUR/JPY to determine buy trade in EUR/JPY | Forex Fund Manager

EUR showed significant strength yesterday, here is what all we observed on major pair, EUR/USD:

• Almost all major currencies, such as GBP, AUD, NZD, CAD and CHF, fell against USD yesterday but EUR rose

• EUR/USD has already been trading above MACD predictor

• It has been trading in an up trending channel

• It looks like butterfly is in formation.

EUR/USD chart:

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Along with EUR/USD, USD/JPY showed a significant bullish move yesterday as it made an engulfing candle pattern on Daily/D1 time-frame:

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Since both EUR/USD and USD/JPY were bullish yesterday, we tried to find out an opportunity to buy EUR/JPY today and here is what all bullish factors we observed on Daily/D1 time-frame of EUR/JPY:

EUR/JPY, Daily; Chart 1

We see Bread & Butter chart pattern here. Following bullish thrust, market usually moves in direction of the thrust to 61.8% of the fall. This is called a Bread & Butter Buy Trade.

EUR/JPY, Daily; Chart 2

The screenshot of H1 time-frame of EUR/JPY below describes how exactly and when we entered buy in EUR/JPY.

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Note that we have moved Stop Loss (SL) to Break Even (BE) point.