The EURJPY attempted to push lower on Friday, bottomed at 121.39 but closed higher at 122.50. Overall the bearish scenario is still intact but the rejection to move consistently below 122.00 area could trigger further upside pullback testing 123.80 in nearest term but I still prefer a bearish scenario with sell in rallies strategy at this phase. Another movement below 122.00 today should trigger further bearish momentum re-testing 120.69 area.
The GBPJPY slipped above 141.50, topped at 141.87 but closed at 140.98. On h4 chart below we can see that price still trapped in range area of 141.50 – 139.30. The bias is neutral in nearest term and we need a consistent movement above or below the range area to see clearer direction. CCI just cross the -100 line up on daily chart suggesting potential upside momentum. Another break above 141.50 area should trigger further upside momentum targeting 143.00 area.
My strategy to short around 0.8910 with a tight stop loss worked perfectly as price bottomed at 0.8795 but closed higher at 0.8868 on Friday. Since the violation to the bearish channel, the bias should be more to the upside but as you can see, price is still move in range area of 0.8910 – 0.8780 area. Until we have a valid break from that range area, the best strategy so far is remains to short around 0.8910 or long around 0.8780 with a tight stop loss. On the upside, a consistent move above 0.8910 should trigger further bullish momentum targeting 0.9040 area.