The EURJPY had a significant bullish momentum yesterday, broke above 111.60 and hit 112.11 earlier today in Asian session on a broad Yen weakness. The bias is bullish in nearest term targeting 113.00. However, as you can see on my daily chart below we still have a minor resistance at 112.18 (December 14 2010 high) and need a clear break above that area to continue the bullish scenario. Immediate support at 111.60. Break below that area could lead us to neutral zone in nearest term as direction would become unclear even potentially create a false breakout scenario testing 111.15 and 110.30 support area.
The GBPJPY attempted to push lower yesterday, bottomed at 130.66 but whipsawed to the upside, topped 132.09 and hit 132.23 earlier today in Asian session on a broad Yen weakness. The bias is bullish in nearest term targeting 133.00 especially if price able to make another breakout above 132.50. However I think we have a bad risk-reward ratio now while price actually still consolidating in range market. Note that market may still highly volatile and another bearish attempt is still potential so I think it is better to patiently wait now. We will have further bullish validation on a clear break above 133.00 targeting 134.20 even 137.70 in longer term outlook. I still prefer a bullish scenario and stay with the best two intra-day strategies: Aggressive traders can long around 130.40 with stop loss below 129.30 targeting 133.00, while conservative traders can long around 129.30 with smaller stop loss and same target at 133.00.
The AUDUSD had a bearish momentum yesterday, bottomed at 0.9831 and closed at 0.9863. The bias remains bearish in nearest term testing 0.9800 key support area. I think intra-day traders should wait patiently on a clear break below 0.9800 to re-activate bearish mode targeting 0.9700 before testing 0.9550 as price is actually still in range area of 0.9800 – 1.0020. Immediate resistance at 0.9960. Break above that area could trigger further bullish momentum re-testing 1.0020. We have mixed and unclear broad Dollar sentiment which could keep volatility remains high. I will stand aside for now but keep watching the market while trying to enjoy my weekend as well.
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