The EURJPY had a significant bearish momentum yesterday, break below my trendline support, bottomed at 132.29 and closed at 132.57. The pair attempted to continue to push lower early today in Asian session, bottomed at 131.56 but further bearish pressure was rejected as the pair now traded higher around 132.60 area. The bias is neutral in nearest term and price might attempt to retreat higher towards the trendline area but as long as the pair stay below the trendline, I still prefer a bearish scenario targeting at least 130.66 area before challenging 127.00. Immediate resistance at 133.20 area. Break above that area should lead us into no trading zone and bullish pressure might regain it’s momentum.
My technical study was completely a mess on Friday. The GBPJPY had a significant bearish momentum, bottomed at 147.64 and closed at 148.16. However, as you can see on my daily chart below, further bearish pressure was rejected by the trendline support (blue). As long as the pair stay above the trendline I prefer a bullish scenario at this phase as the current bearish pressure still considered as a correction movement. But once the trendline support violated to the downside, we should have bearish continuation scenario towards 142.80 area.
My trendline resistance was proved to be the right technical tool to be watching closely at this phase. As you can see on my h4 chart below, price failed to move above the trendline before had a bearish momentum and now traded below 0.9090 key support area. We have an important intermediate support around 0.8950 area (blue short horizontal line) as price bounce higher after hit that area and at the same time CCI just cross the -100 line up on h1 chart suggesting potential upside rebound. However as long as the pair stay below 0.9090 area I still prefer a bearish scenario at this phase. I do not have any position right now and I think I will wait for any reaction around 0.9090 or 0.8950 area today before make any decisions.