The EURJPY attempted to push higher yesterday, just to make a higher right shoulder of the H&S formation and whipsawed to the downside, closed lower at 105.77 and hit 105.20 earlier today in Asian session. The bullish phase since bounced from 100.74 and the break above the minor trend line resistance (red) remains intact, but a clear break below 104.95 would confirm the H&S bearish scenario testing 102.85. Immediate resistance is seen around 105.80. A clear break above that area could trigger further upside pressure testing 106.52, (the new right shoulder) but only a clear break and daily close above 108.00 and the major trend line resistance (white) could continue the bullish scenario, giving an early signal of a major bullish reversal scenario.
The GBPJPY attempted to push higher yesterday, topped at 121.66 but closed lower at 121.16 and hit 120.71 earlier today in Asian session. The bias is neutral in nearest term. Price is still in a bullish phase since bounced from the double bottom formation but the trend line resistance is too strong right now, limit the bullish momentum. A clear break below 120.80 support area could trigger further bearish pressure testing 120.00 even lower. On the upside, we still need a clear break and daily close above 122.62 (Monday’s high) and the trend line resistance to continue the double bottom bullish reversal scenario.
The AUDUSD made another volatile but indecisive movement yesterday. The bias remains neutral in nearest term as price still trapped in a wide range area of 1.0400 – 1.0110 as you can see on my h4 chart below. Overall price is still in a bullish phase since bounced from 0.9400 and broke above the trend line resistance but would need a clear break above 1.0400 to continue the bullish scenario. On the downside, key support area is seen around 1.0110 – 1.0000. A clear break below that area could be a threat to the current bullish intraday outlook. Immediate resistance is seen around 1.0262. A clear break above that area could trigger further bullish pressure testing 1.0370 – 1.0400 region.
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