The EURJPY didn’t make significant movement yesterday. The bias is neutral in nearest term. There are no changes in my daily technical outlook where overall price still trapped in the range area between 113.40 – 109.45 as you can see on my daily chart below. The best strategy in this kind of market is to short around 113.40 or long around 109.45/108.70 with tight stop loss. I personally prefer a bearish scenario as long as price moves below the trend line resistance.
The GBPJPY attempted to push lower yesterday, bottomed at 124.48 but closed higher at 125.74. There were some bearish pressures earlier today in Asian session push the pair lower to 125.00 which keep the major bearish bias remains strong, aiming for 122.93 region. However, as you can see on my daily chart below, there is a potential strong support area, a triple bottom formation around 124.16/80 so we need a clear break below that support to continue the bearish scenario. Immediate resistance is seen around 126.00. A clear break above that area could trigger further bullish pullback testing 127.00 area. Also note that actually price is moving sideways since July. Whether the current sideways movement is just a normal consolidation before continue the major bearish scenario or signaling a bearish exhaustion and potential bullish reversal especially if price breaks above the trend line resistance, I am expecting a break from this range condition to see clearer direction. The current broad Yen strength supports the bearish outlook, but a rapid Yen appreciation could lead to an intervention.
The AUDUSD fought back yesterday after touched the trend line support and 38.2% Fibonacci retracement of 0.8066 – 1.1079 at 0.9925, topped at 1.0411 and now struggling around the 23.6% Fibo as you can see on my daily chart below. The bias is bullish in nearest term testing 1.0370 – 1.0400 but unless we have a daily close back above 1.0400, overall price is still in a bearish phase after the rapid fall from 1.1079. Immediate support is seen at 1.0250. A clear break below that area could change the intraday bias back to bearish testing 1.0070. On the downside, only a clear break below the trend line support and 0.9925 could continue the bearish scenario.
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