EURJPY Forecast

The hammer candlestick pattern gave us a valid bullish correction signal on Friday as market responded to the intervention threat by the Japanese government to weaken the Yen. Price whipsawed to the upside significantly, topped at 130.13 and closed at 129.55 after attempted to push lower and hit bottom at 126.86. I am expecting further bullish momentum testing 131.75 and the trendline resistance area (red, see h4 chart below) as market may continue respond further to the intervention threat thus potentially bring the pair higher. Immediate support at 129.50/00 area. Break below that area should trigger further bearish momentum technically but I won’t place a short position under an intervention threat.

GBPJPY Forecast

The market responded to the intervention threat by the Japanese government and brought the pair higher, topped at 143.47 and closed at 142.66 after bottomed at 139.27 on Friday. Technically, the hammer candlestick pattern, as you can see on h4 chart below suggest potential upside correction testing 144.60 in nearest term. Break above 144.60 could be a serious threat to the bearish outlook and potentially begin the bullish outlook in longer term at least testing 148.50 area. Immediate support at 142.50. Break below that area should trigger further bearish momentum but I won’t place a short position under an intervention threat.

AUDUSD Forecast

The hammer candlestick pattern gave us a good signal of bullish correction on Friday as the pair closed higher at 0.9059 after bottomed at 0.8916 and continue to push higher earlier today in Asian session, traded around 0.9155 at the time I wrote this comment. The bias is bullish in nearest term targeting 0.9250 even 0.9327 in longer term but we need a consistent move above 0.9180 key resistance area to continue further bullish momentum. Immediate support at 0.9090. Break below that area should trigger further bearish momentum re-testing 0.9030 even 0.8916 area.