The EURJPY attempted to push lower yesterday, bottomed at 128.77 but further bearish pressure was rejected as the pair closed higher at 129.69 and keep moving higher earlier today in Asian session around 130.17 at the time I wrote this comment. On h4 chart below 129.00 area and now back above the trendline indicating potential false breakdown which could trigger bullish momentum. The bias is neutral in nearest term and it’s too early to say that the bearish momentum is over as overall, “safe haven currencies” like Yen and Dollar seems to benefit from risk aversion as traders become less optimistic about global recovery. Immediate resistance at 131.75 area. Initial support at 129.00 area. Break below that area should be seen as bearish continuation re-testing 126.86 area.
The GBPJPY bearish momentum was also limited yesterday. On h4 chart below we can see that after breakdown below the trendline support, price retreated to the upside testing the trendline support. This fact is often happen technically, but if price back to move above the trendline again should trigger further bullish momentum targeting 144.85 area. Break above that area should change the neutral medium bias to bullish. On the downside, it’s too early to say that the bearish is over as price still struggling around the trendline. “safe haven currencies” like Yen and Dollar seems to benefit from risk aversion as traders become less optimistic about global recovery. Immediate support at 143.10. Break below that area should trigger further bearish momentum targeting 141.99 even 141.02 area.
The CCI divergence gave us a valid warning about bullish pullback. Bearish momentum was paused as price moving higher around 0.9156 at the time I wrote this comment. The key resistance level at this phase is 0.9180 and the trendline resistance area. As long as price stay below the trendline resistance the bearish scenario should remains intact. Immediate support at 0.9090 followed by 0.9030. Break below those area could trigger bearish continuation towards 0.8915 area.