The EURJPY attempted to push higher yesterday, topped at 137.94 but further bullish scenario was clearly rejected as the pair whipsaw to the downside, close lower at 136.94. On h1 chart below we can see that this was a case of a false breakout from the range area as the pair retreated back into range area. Although the pair keep making higher lows since July 29, but bullish momentum seems very limited now as the pair still consolidate. The bias is neutral in nearest term but bullish medium term remains intact and only a clear breakout below 136.08 should be seen as bullish failure. Immediate resistance at 137.94 (yesterday’s high). A clear break above that area should trigger further bullish momentum towards 139.38 area.
The double top formation I showed you yesterday has gave us a valid warning of a downside pullback. After attempted to push higher, topped 162.37 the pair whipsawed to the downside, bottomed at 159.94 and closed at 160.03. The bias is bearish in nearest term testing 159.30 area. A clear break below that area should be a serious threat to the current bullish medium outlook and trigger further bearish scenario back towards 154.00 area. On the other hand, if the pair able to stay above that area, the bullish outlook remains intact.Â Unless we have a clear breakout above 162.57, the upside scenario should remains limited at this phase. Immediate resistance at 161.20 area.
The AUDUSD made indecisive movement yesterday, formed a Doji on daily chart as market continue to consolidate. On h1 chart below we can see that the pair attempted to push higher, traded above the upper border of the minor bearish channel but bullish momentum was limited as the pair retreated back into the channel. The bias remains neutral in nearest term but medium term outlook remains bullish testing 0.8500 area. Immediate support is seen at 0.8350. Break below that area should trigger further bearish correction scenario testing 0.8261 key support level.