The EURJPY didn’t make significant movement yesterday. The bias is neutral in nearest term with potential range between 108.33 – 107.30 but overall we are still in major bearish outlook. Break above 108.33 could trigger further upside consolidation testing 108.85 – 109.50 resistance area. On the other hand, break below 107.30 could trigger further bearish continuation targeting 106.25.
The GBPJPY was indecisive yesterday, made a Doji on daily chart. The bias is neutral in nearest term but we are still in a major strong bearish outlook. On daily chart below we can see price is now testing a crucial support around 126.50/10. Technically, from a broader outlook, there are two possibilities in this kind of situation. First, if this support area hold, strong upside pullback could take place, even a potential starting point for a bullish reversal scenario. Second, bearish scenario would continue if price able to make a clear break below that support area at least targeting 125.30 even much lower. Immediate resistance at 127.05. Break above that area could trigger further bullish pullback testing 127.50/80 resistance area.
The AUDUSD hit 1.0182 yesterday and touched 1.0196 earlier today in Asian session. The bias remains bullish in nearest term aiming for new historical highs. The nearest is around 1.0277 according to daily Fibonacci extension calculation. If you remember yesterday I said that I am interested in anticipating a big bearish reversal scenario. I still do, as the risk reward ratio is very good. As you can see on daily chart below, looks like price is making a Gravestone Doji. This candle is not complete yet, so actually we don’t have a Gravestone Doji yet. Of course there are several possibilities of what kind of candle formation we will have today, but if we do have a Gravestone Doji, it’s a good signal of a bearish reversal scenario with big downside target. Immediate support at 1.0130. We may not have the Gravestone Doji if break below that area testing 1.0087 – 1.000, but psychologically, a big downside correction after touched all time high remains potential regardless of what kind of daily candle we have.
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