The EURJPY jumped higher today, made more than 100 pips gap from close price on Friday. Usually gaps are filled especially if it goes against the trend. However in this case, the gap goes to the same direction with the trend. Although I think the bias is bullish in nearest term targeting 127.88, I don’t like big gaps, so I will stay away for now. Immediate support at 126.50. Break below that area could trigger further bearish correction testing 125.95 area. On the upside, break above 127.88 could trigger further bullish continuation testing 128.80 – 129.00 area.
The GBPJPY able to stay above the trendline resistance so far, as you can see on my h4 chart below. This fact should continue the bullish outlook at least testing 144.75 area in nearest term before testing 146.66 region. Immediate support at 142.90. Break below that area could trigger further bearish pressure testing the trendline and lead us back into no trading zone as direction would become unclear.
The AUDUSD had a bullish momentum yesterday, topped at 0.9342 and closed at 0.9330. We had a gap earlier today in Asian session as price opened higher at 0.9360. The main bias remains bullish after the breakout above the broadening formation targeting 0.9404 but gaps are usually filled so watch out for potential bearish pullback around 0.9330 – 0.9300 area.
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