The EURJPY is corrected higher, traded around 128.11 at the time I wrote this comment after failed to consistently move below 126.89. This fact could trigger further bullish correction, but as long as price stay below the trendline, the bearish scenario remains intact. In fact, I think the trendline area is a good place for a short position with a tight stop loss above it. A good technical set up and risk-reward ratio. Break above the trendline should be seen as serious threat to the bearish scenario and trigger bullish momentum towards 129.00. Break above 129.00 should be seen as bearish failure and a new bullish scenario targeting 130.70 area. Immediate support at 127.50. Break below that area should trigger further bearish scenario re-testing 126.89 and keep the bearish scenario intact.
The GBPJPY failed to continue its bearish momentum yesterday, topped at 146.71 and closed at 146.59. If you notice, I have made some adjustment to the triangle. I think we are in no trading zone now and I prefer to stand aside as direction is unclear for me. We need a break from the triangle area to see clearer direction. Immediate support at 146.00 area. Break below that area should trigger further bearish momentum testing the lower line of the triangle. Initial resistance at 147.50. Break above that area should trigger further bullish momentum testing the upper line of the triangle.
The AUDUSD made another indecisive movement yesterday. On h4 chart below we can see that price still trapped in range area of 0.8980 – 0.9090. So far, we have nothing significant technically. The bias remains neutral in nearest term and we need a break from that range area to see clearer direction but overall I still prefer a bearish scenario with sell on rallies strategy. Break above 0.9090 should trigger further bullish correction towards 0.9170 while break below 0.8980 should trigger further bearish momentum towards 0.8910.