For today’s analysis, we shall look at a EURJPYweekly technical analysis using a mult-time frame analysis. This means we shall try to relate the movement of prices on a EUR/JPY pair using different times frame. The weekly chart will be based on as alarge time frame,then the daily chart and the H4 as a smaller timeframe.
How to trade using multi-time frame analysis.
From our previous analysis here, we can see price ran up as anticipated. Currently price is into the resistance zone and we can clearly see a shift in momentum on the daily chart as it tries to reach for higher highs. The momentum shift can clearly be seen in the channel on the 4- hour time frame as we will see later.
DAILY
The daily price is in small channel, break and close above the channel is likely to land price into an immediate strong resistance zone around 133.600. Daily candle close below the channel may lead price to retest the recent lows around 128.500. Preferably the candle should close below that 21 Simple Moving Average to confirm the recent lows retest.
4-HOUR
The price is into the channel marked by blue trend lines as shown below. Wait confirmation of candle close above the mid channel trendline to complete the swing to upper end or else it could fail and fall back and gets you trapped. Keep day trading on the lower time frames WITHIN the channel as we wait for a daily candle confirmation for a swing trade move.
