The EURJPY continued its bullish correction yesterday, topped at 109.06 and now struggling around the trend line resistance as you can see on my h4 chart below. The bias remains bullish in nearest term but note that we need a clear break above the trend line resistance to cancel the major bearish outlook and take us to a new bullish phase especially if price able to make a clear break above 109.50 at least testing 110.20 region. Immediate support at 108.30. Break below that area could lead us to neutral zone in nearest term, keep the major bearish scenario intact testing 107.60 support area.
The GBPJPY continued its bullish momentum yesterday, topped at 131.12 and closed at 130.71. Although market is likely to remain highly volatile, this fact gives further validation to the bullish reversal scenario targeting 133.00 resistance area. Immediate support at 130.30. Break below that area could lead us to neutral zone in nearest term testing 129.30 but I still prefer a bullish scenario at this phase.
The AUDUSD had a strong bullish momentum yesterday, topped at 0.9965 and closed at 0.9956 on a broad Dollar weakness. The bias is bullish in nearest term especially if price able to make another strong break above 0.9987 targeting 1.0030/70. Immediate support at 0.9885. Break below that area could trigger further bearish pressure testing the double bottom formation around 0.9800. We need a clear break below the double bottom formation to keep the bearish scenario intact. Otherwise, the double bottom formation can be a good reason to end the bearish phase and we may see further upside pressure aim for new historical highs. I personally still prefer a big bearish correction scenario, but we should trade what we see, not what we expect.
©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.