The EURJPY attempted to push lower yesterday, bottomed at 122.04 but closed higher at 122.89. On h4 chart below we can see that the minor bullish channel has been violated to the downside indicating potential end to the bullish correction. The bias is bearish in nearest term re-testing 122.00 area. Break below that area should trigger further bearish momentum towards 120.69 area. Immediate resistance at 123.50. Break above that area should lead us into no trading zone as direction would become unclear. On fundamental side, unless EU come up with satisfying detail about rescue plan for Greek, Euro should keep under pressure.
The GBPJPY didn’t make significant movement yesterday indicating consolidation phase. On h4 chart below we can see that price still trapped in a range area of 141.50 – 139.30 but still within the context of a bearish scenario. I think the best strategy remains to short around 141.50 or long around 139.30 with a tight stop loss. Break on either side should give us clearer direction.
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My strategy to short around 0.8910 with a tight stop loss still work so far as price is moving lower after topped at 0.8919 yesterday. However note that the stop loss must be very tight as a consistent move above 0.8910 area could trigger further bullish momentum targeting 0.9040. Immediate support at 0.8850 followed by 0.8780 area.