Longs for EUR JPY on 2020

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This is a longer term analysis for EURJPY Forex cross pair done on the monthly timeframe. As explained in many other supply and demand scenarios, when we have a longer term monthly imbalance that gains control, we are not allowed to take a position against it.

EUR JPY best trading opportunities

If we take a look at EURJPY Forex monthly timeframe analysis wearing the supply and demand glasses, we can see the reason why EURJPY forex cross pair is rallying instead of dropping.

EURJPY Forex cross pair has been dropping for months until monthly demand imbalance at 1 gained control. This cross pair has been rallying from down there for five consecutive months, we are expecting price to continue rallying in the forthcoming months. That does not mean price is not going to correct at all, the underlying price hardly moves in a straight line. But what we do know is that a strong monthly demand imbalance has taken control of EURJPY Forex cross pair.

EURJPY chart analysis, high odds for long trades

We can see a similar scenario on a previous monthly demand level slightly underneath monthly demand 1, we have an older monthly demand level at 2 that played out nicely and got price rallying for many months until the correction happened and monthly demand 1 gained control

EUR JPY price action analysis using supply and demand technical analysis

This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.

Trading supply and demand imbalances is ideal for beginners and those with a full or half time job, you won’t need to stay in front of the computer all day long trying to move price action with your mind. 

As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why is it that you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances gaining control. Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements.

You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for price to pullback or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.

If you want to learn how to trade using our supply and demand trading strategy, join our supply and demand trading course.

There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy a CFD (contracts for difference) if you are in a country where it’s allowed.

Alfonso Moreno
Alfonso Moreno
Full time trader, expert technical analyst and founder of Set and Forget supply and demand online trading community. Traveler, photographer and adventurer.

2 Comments

  1. Mugiono says:

    I want to learn Supply and Demand. Can anyone to give information, “How rule to draw base area Supply and Demand. Thanks

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