The EURJPY had a significant bullish momentum on Friday, topped at 138.69 and closed at 138.36. Technically speaking, the bias is now bullish in both nearest and medium term targeting 139.21 area but fundamentally we have to be very careful since Euro economy outlook is still weak and give us not enough reasons to convincingly hold the Euro, so the bullish outlook seems limited in this phase. I prefer to stay away from the market and wait for further development before take the next steps. CCI in overbought area and heading down on h4 chart suggests potential downside rebound testing support area around 137.60. Break below that area should trigger further bearish pressure testing 136.08.
The GBPJPY surprisingly had a bullish momentum on Friday, topped at 163.05 and closed at 162.73. Although the bullish momentum seems very strong, I will be very careful before open a long position. The first reason is fundamental, where UK economy outlook addressed by BoE on Thursday was a very pessimistic one. Second reason is technical, earlier today in Asian market, the pair is traded lower below 162.57 (double top, see the chart below) area indicating that breakout to the upside is not so convincingly. So I prefer to stay away from the market for now and watch for further development. Immediate support at 161.30. Break below that area should trigger further bearish pressure towards 159.30. Initial resistance at 163.05 (Friday’s high). Break above that area should trigger further bullish momentum.
The AUDUSD continued it’s consolidation on Friday. On h1 chart below we can see that the intermediate support at 0.8350 area still hold, preventing further bearish downside correction. Clear break below that area should trigger further bearish pressure re-testing 0.8261 area. The bias remains neutral in nearest term and I still prefer to stay away from the market for now but as long as the pair stay above 0.8261 the bullish outlook in medium term remains intact. Initial resistance at 0.8450 – 0.8500 area.