The EURJPY was technically a mess yesterday. After break below the minor trendline on Friday, the pair now retreat above the trendline and struggle around that area. I think we are in no trading zone right now and I will stay our from the market. We will have some important fundamental numbers this week, so market volatility and technical failures shouldn’t be a big surprise . If price able to keep moving above the trendline, then what happened on Friday is considered as a false breakdown which usually lead to significant bullish momentum re-testing 138.68 area. Immediate support at 133.00. Break below that area should trigger further bearish momentum re-testing 131.50 area.
The GBPUSD had a bullish momentum yesterday, topped at 148.91 and closed a little bit lower at 148.25. Although the trendline support (blue) still provide good support preventing further bearish attack, the bearish pressure can not be said over yet. My technical study detect a potential battle between the trendline support on the downside with trendline resistance (red) on the upside. Break on either side should give us clearer direction. I will keep out from the market for now. Immediate resistance at 148.91 (yesterday’s high). Break above that area should trigger further bullish momentum testing the trendline resistance area. Initial support at 147.50. Break below that area could trigger further bearish momentum towards 146.70 area.
We had a volatile market yesterday. The pair attempted to push higher, topped at 0.9120 but failed to close above 0.9090 indicating limited and unconvincing bullish momentum. The trendline resistance (blue) remains my technical focus at this phase. As long as the pair stay below it, I still prefer a bearish scenario. However, a break above the trendline resistance should trigger further bullish momentum and continue the bullish movement towards 0.9300 area. Immediate support at 0.9025. Break below that area should trigger further bearish pressure re-testing 0.8950 area.