As I had expected, the EURJPY break below 131.75, bottomed at 129.51 and closed at 129.56. The pair attempt to push lower earlier today in Asian session, bottomed at 126.86 but concern about possible intervention by Japanese government to weaken the Yen brought the pair higher around 128.62 at the time I wrote this comment. Well, I don’t know whether the market will respond further to the intervention threat, but technically we have a hammer pattern indicating that bullish correction is potential. I prefer to stand aside for now. Immediate resistance at 130.20 area. Break above that area should trigger further bullish correction.
The GBPJPY continued its bearish momentum yesterday, hit my short target at 146.40, even much further, bottomed at 142.45 and closed at 142.54. Earlier today in Asian session, the pair attempted to push lower, bottomed at 139.27 but concern about possible intervention by Japanese government brought the pair higher around 141.11 at the time I wrote this comment. While technical outlook remains slightly bearish, we need to be careful as intervention is not a thing we want to ignore. I will stay away from the market and wait for further development.
My technical study was completely a mess yesterday. As you can see on my h4 chart below, price fell significantly, violated my bullish channel, bottomed at 0.9092 and closed at 0.9122. Earlier today in Asian market price attempted to push lower, bottomed at 0.8916 but further bearish pressure was rejected so far as price whipsawed higher around 0.9035 at the time I wrote this comment. We have a hammer candlestick formation on h4 chart suggesting potential upside correction testing 0.9123 (today’s high), but I prefer to stand aside for now. We seems to have some chaos and panic on fundamental side as stock market dropped on Dubai World proposal to delay debts payment shook investor’s confidence. It’s a perfect time to watch and learn, but a bad time to enter the market.