The EURJPY attempted to push lower yesterday, bottomed at 109.75 but whipsawed to the upside, topped at 112.83 and closed at 111.24 in a high volatile market. The bias is neutral in nearest term but the major bearish scenario remains intact. Looks like price found a good support around 108 – 109 area as we have been seeing significant upside pullback every time price touch that area. Expected medium term range at 114.50 – 108.83. I will short around 114.50 or long around 108.83 as I see the best risk-reward ratio there. Between that area, I will stay away from this pair for now.
The GBPJPY attempted to push lower yesterday, bottomed at 130.81 but whipsawed to the upside, topped at 134.44 and closed at 133.23 in a high volatile market. This fact should keep the bullish correction scenario intact targeting 136.75 area. Only a movement below 133.20 could wane the bullish bias and lead us back into no trading zone but the bullish scenario remains intact as long as price move inside the bullish channel. It’s a very tricky market and we could see another high volatility movement today.
The AUDUSD failed to continue its bullish momentum yesterday. On h4 chart below we can see that price is now struggling around 0.8360 area indicating a critical technical phase. We need to see another consistent move above 0.8360 to keep the bullish scenario intact as yesterday’s movement below that area could produce a false breakdown scenario which could trigger significant bullish momentum with 0.8715 area remains a technical upside target. On the other hand, a consistent movement below 0.8360 could be a serious threat to the current bullish outlook and lead us back towards 0.8070 region.
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