From the weekly and daily perspective, price is moving to the upside extremely without a proper retest, a continuation of further upside is expected after the price retested the structure I just identified
From the COT perspective, hedge funds are bullish bias on both EUR and JPY, more long opened than the short they had opened. And during the economic crisis, we are having right now, all the money should flow into the JPY, since JPY is a safe haven currency, so we may see a deeper retracement on EJ before it pushes to the upside since the strength of EUR is greater than JPY from the COT views.
The proper way to approaching this pair is to waiting for the price retested daily structure before we can long it. If the price managed to do it, I will switch to 4H perspective, and waiting for the market to provide to me one of my rules then I will take a nice long on EJ with a good RR. Buying at the current price is not a smart way, because the price may be easily pushing to the downside and grab some liquidity before it pushes to the upside.
Always reactive to the market instead of predictive it, this analysis is based on technical and COT perspective.
Comment below and let me know your thought on EJ.
From the COT perspective, hedge funds are bullish bias on both EUR and JPY, more long opened than the short they had opened. And during the economic crisis, we are having right now, all the money should flow into the JPY, since JPY is a safe haven currency, so we may see a deeper retracement on EJ before it pushes to the upside since the strength of EUR is greater than JPY from the COT views.
The proper way to approaching this pair is to waiting for the price retested daily structure before we can long it. If the price managed to do it, I will switch to 4H perspective, and waiting for the market to provide to me one of my rules then I will take a nice long on EJ with a good RR. Buying at the current price is not a smart way, because the price may be easily pushing to the downside and grab some liquidity before it pushes to the upside.
Always reactive to the market instead of predictive it, this analysis is based on technical and COT perspective.
Comment below and let me know your thought on EJ.