The EURJPY had a moderate bearish momentum yesterday. I think it’s better to stay away right now and pay attention to the battle between trendline resistance and support as shown on h4 chart below. Since the false breakout from the trendline resistance Tuesday, I prefer a downside scenario below trendline support. Immediate support at 132.50. Break below that area should trigger further bearish momentum towards 131.50. Initial resistance at 134.50. Break above that area should trigegr further bullish scenario towards 136.00 area.Â CCI in oversold area and about to cross the -100 line up on h4 chart suggesting potential upside rebound.
The GBPJPY attempted to push lower yesterday, bottomed at 153.84 but further bearish momentum was rejected as the pair whipsawed to the upside, hit the top at 156.31 and closed at 155.56. We have conflicting technical view here. The rising wedge formation suggests a potential downside scenario while the price now is back above the trendline suggests potential bullish outlook. If the pair able to keep position outside the rising wedge and break below the trendline we should have a bearish view. If the pair able to stay above the trendline and go back inside the rising wedge area, we should see it as bearish scenario failure and should trigger further bullish momentum. Immediate resistance at 156.31 followed by 157.44. Initial support at 153.80.
The AUDUSD failed to continue it’s bullish scenario yesterday. On daily chart below we can see that it was a case of a false breakout from the range area of 0.8261 â€“ 0.7700. At the same time, CCI just cross the 100 line down on daily chart suggesting further potential bearish momentum. I hope CCI is misleading now and continue bullish momentum above 0.8261 because if it’s right, we will go back into boring rage market again. I think it’s better to stay away and wait for further development.