EURJPY - Trade Idea - 16th July 2017

EURJPY - looking for a pullback to value for a possible long entry.

From the Monthly Timeframe can see overall mometum is bullish, producing higher lows since 2013.

Monthly candles have been consecutively green and strongly bullish, although the current candle obviously hasn't closed it's looking to form a shooting a star after breaking above the EMA's.

Just using the Monthly Timeframe here to confirm, that the trend, is indeed bullish so I am looking for momentum to the upside to trade with.

From a Weekly Timeframe perspective, price has recently broken out of 127.00 which we can see is a key level of support and resistance since 2013.

Price broke and closed above the 200EMA and decelleration has started to occurr with price looking to naturally pullback to value around the 200EMA and test the Monthly 127.00 level as support which should align with the 200EMA.

Moving closer into the Daily Timeframe, can see price has already begun pulling back and momentum to the downside slowing down.

As price falls to the 127.00 this should align with the Daily 50EMA, which would be the equivalent Weekly 200EMA and also will reflect a 50% Fib Zone.

There's no trade as of yet, but will be looking for price to continue to pullback to the 127.00 zone and begin showing decelleration and momentum back to the upside.

If there is no pullback, there will obviously be no trade opportunity as momentum of the run will still be going strong.