The EURJPY had a significant bearish momentum earlier today in Asian session. On daily chart below we can see that the gap has been filled. Although the bias is bearish in nearest term testing 125.15 area, the main scenario should remain bullish and the current bearish momentum, beside only to fill the gap, is also a normal downside correction. Initial resistance at 127.88. We need a clear break above that area to continue the major bullish scenario.
The GBPJPY attempted to push higher yesterday, topped at 144.49 but closed lower at 143.28 and keep moving lower earlier today in Asian session around 142.68. The bias is neutral in nearest term and I think we are in no trading zone. Price still struggling around the trendline indicating intense battle between buyer and seller. The bullish scenario should remain intact but we need a clear break above potential top around 144.70/50 area to continue the bullish testing 147.20 area. A failure to do so and another consistent movement below the trendline could trigger significant downside pressure testing 140.95 region.
The AUDUSD had a significant bearish correction yesterday. On daily chart below we can see that price is testing the lower line of the broadening formation which is expected to be a good support at this phase to prevent further bearish pressure and continue the bullish scenario. I think the lower line of the broadening formation is a good place for a long position with stop loss below the lower line as actually the current bearish momentum is only a normal correction. A movement back inside the formation could lead us not only to a no trading zone but potential bearish outlook as bullish scenario may fail.
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