The EURJPY had a moderate bullish momentum yesterday. The pair topped at 135.60 but closed lower at 134.46. On h4 chart below we can see that this was a case of a false breakout from trendline resistance. I think we are still in no trading zone and do not rush jump into the market since we have no confirmation on bullish scenario yet. Immediate support at 134.20 â€“ 133.80 area. Break below that area should trigger further bearish momentum. Initial resistance at 135.60 (yesterday’s high). Consistent movement above that area should be seen as bullish confirmation at least towards 136.70 area. CCI about to cross the 100 line down on h4 chart suggesting potential downside rebound.
The GBPJPY had a significant bullish momentum yesterday. On daily chart below we can see that we have a breakout on trendline resistance suggesting potential bullish outlook. The bias is bullish in nearest term targeting 158.50. However CCI in overbought area and heading down on h4 chart so watch out for potential downside correction testing 155.20 support area. Break below that area should cancel the bullish scenario. The market has been very tricky lately so use only tight money management at this phase.
The broadening formation I showed you yesterday gave us a good signal to stay out of of the market. We had a volatile market without clear direction where price whipsawed to the downside, hit the bottom (0.8105) after hit the top (0.8221). Until we have more significant movement, let this formation be our guide for now to keep out of the market. Good luck .