EURJPY: a pinbar where you need one!
Yesterday price dropped down below 200 EMA to the support zone. Later, it moved back up again closing above EMA and within the previous candle's range.
This pinbar has three supportive factors making it more significant than any other.
► It breached 200 EMA, yet it closed above it confirming the dynamic level to be a support.
► Opened and closed within the previous candle's range => the whole downside momentum was completely absorbed within a single candle.
► Interest rates support the bullish narrative although it is 5 years since they were changed.
There is also one contrarian point that should be weighed in. Japanese Yen is usually a currency relied upon in times of uncertainty. I think we've got a lot of that lately.
Good luck!
This pinbar has three supportive factors making it more significant than any other.
► It breached 200 EMA, yet it closed above it confirming the dynamic level to be a support.
► Opened and closed within the previous candle's range => the whole downside momentum was completely absorbed within a single candle.
► Interest rates support the bullish narrative although it is 5 years since they were changed.
There is also one contrarian point that should be weighed in. Japanese Yen is usually a currency relied upon in times of uncertainty. I think we've got a lot of that lately.
Good luck!
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