The EURJPY failed to continue its bullish momentum on Friday, break below 115.80 after some bad news from the Euro zone triggered broad Euro sell-off and hit 115.18 earlier today in Asian session. The fact that price is now traded below 116.00 changes my intraday bias back to bearish but note that we may have a strong support area at the lower line of the violated bearish channel (red) around 114.80. Not to mention that the major bearish scenario since the fall from 123.31 still need a clear break below 114.00 to continue the bearish scenario targeting 112.05 region. On the upside, a clear break back above 116.00 would lead us to neutral zone in nearest term testing 116.50 – 117.00/58 resistance area.
The GBPJPY was volatile but indecisive on Friday. The bias is neutral in nearest term. There are two trend lines resistance which worth paying attention to as you can see on my h4 chart below. First, the white trend line, which is violated to the upside suggests a short term bullish view. Second, the blue trend line resistance which is being tested now along with 132.97 – 133.16 resistance area. A clear break above that area could trigger further bullish momentum testing 134.00 which can be a threat to the bearish scenario. Aggressive intraday traders can still short around 132.97 – 133.16 due to a good risk – reward ratio. Immediate support at 132.00. A clear break below that area would change the intraday bias to bearish testing 131.50 – 130.75 but the key support area at this phase located around 130.20.
The AUDUSD was volatile but indecisive on Friday, made a Doji on daily chart but had some downside pressures earlier today in Asian session hit 1.0571. This fact stops the short term technical bullishness for now and changes my intraday bias back to bearish retesting strong intraday support around 1.0500. Immediate resistance at 1.0650. A clear break above that area would lead us to neutral zone in nearest term as direction would become unclear retesting the trend line resistance and 1.0700 which is for me remains the best place for a short position with good risk – reward ratio. Only a clear break above the trend line resistance could be a threat to the current bearish outlook since the fall from all time high at 1.1010. On the downside, a clear break below 1.0500 would open the door for further bearish scenario testing 1.0388 even 1.0200.
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