The EURJPY failed to continued it’s bullish momentum yesterday. For me, this is a proof that the bullish momentum on Friday is fragile because it was not supported by Euro strong fundamental outlook. That kind of “unreal” bullish momentum could lead to significant downside reversal. The bias is bearish in nearest term testing 136.00 area. However, CCI just cross the -100 line on h1 chart so watch out for potential upside rebound testing 137.50 – 137.80 area. Although technically, as long as the pair stay above 136.00 the bullish scenario remains intact, but overall I am expecting further bearish scenario based on the weak Euro economy outlook this year addressed by Trichet on ECB press conference last Thursday.
The GBPJPY failed to continued it’s bullish momentum yesterday. Similar to EURJPY, the bullish Sterling was not supported by a good fundamental basis. On h1 chart below, we have a broadening formation, where price hit new highs and low without clear direction. I think it’s better to stay away for now and waiting for further development. I prefer a downside scenario breakdown the lower border of the broadening formation, but until that happen, doing nothing is the best thing for now. Immediate support at 159.00 Initial resistance at 161.70.
The AUDUSD continued it’s consolidation yesterday. The pair has been trade lower since August 04, made a minor moderate bearish channel but without significant momentum. On h4 chart below we can see that the trendline support has been violated to the downside suggests potential bearish outlook and a threat to the current bullish medium term, but since we have not seen significant momentum and the pair still traded above 0.8261, this violation could be a misleading bearish signal. Keep stay out from the market until we have more significant movement. Immediate support at 0.8325. Break below that area should trigger further bearish momentum testing 0.8261 key level. Initial resistance at 0.8450.