The EURJPY had a moderate bullish momentum on Friday. On h4 chart below we can see that the price is now back above the trendline suggesting potential bullish outlook. However we know that lately this pair is technically a mess as it still struggling around the trendline without any convincing direction. I will focus on July 27 high at 138.08 area. A clear break above that area should trigger further bullish momentum testing 138.87 or even 138.87 area. Immediate support at 134.10. Break below that area would continue the uncertainty and could lead us into no trading zone.
The violation to the major trendline resistance to the upside on June 30 should set us a bullish outlook, but we didn’t see a significant and convincing bullish momentum on Friday suggests that bullish momentum could be exhausted now and upside scenario could be very limited at this point. I will pay attention to 159.30 level. A clear breakout above that area should trigger further bullish momentum towards 162.57. Immediate support at 157.50. Break below that area should diminish the bullish outlook.
The better than expected US GDP data on fundamental side gave me bullish confirmation on technical side as the pair is now move convincingly above 0.8261. On Friday, the pair topped at 0.8365 and closed at 0.8356. The bias is bullish in nearest term testing 0.8500 area. However, CCI in overbought area and heading down on h1 chart so watch out for potential downside rebound testing 0.8290 support area.