The EURJPY had a significant bearish momentum yesterday, bottomed at 130.10 and closed at 130.24. Unfortunately, my trading plan was not executed because price was not near enough to the trendline resistance (orange). But that’s OK . The bias is bearish in nearest term targeting 127.00 area but I think we need a valid break below 129.79 support area to confirm my bearish continuation view. Immediate resistance at 130.60. Break above that area should lead to further bullish correction but long position is not recommended at this phase.
The GBPJPY had a moderate bearish momentum yesterday, bottomed at 142.66 and closed at 142.76. Technically the situation could be very tricky at this phase since the pair now traded in a bearish tone but the bullish correction warning showed by the hammer can only be canceled by a movement below 139.71 which is also potential bearish target in nearest term. I will pay attention to immediate support at 141.90 area. A failure to move below that area should keep the bullish correction scenario alive and kicking and re-testing 144.50 area while a valid break below that area should trigger further bearish pressure towards 139.71.
The AUDUSD failed to continue it’s bullish momentum yesterday, break below 0.8787 support area, bottomed at 0.8675 and closed at 0.8695. Fortunately, my system did not produce a buy signal yesterday. On daily chart below we can see that this was a case of a false breakout which usually lead to significant bearish momentum. The ias is bearish in nearest term targeting 0.8580 and 0.8500 area. Any movement above 0.8787 should lead us into no trading zone as direction would become unclear.