The EURJPY continued it’s bullish momentum on Friday, topped at 138.34 and closed at 138.12. The bullish scenario should remains intact but I think we are now in transition phase so we need to wait for further development. As you can see on my daily chart below, the pair is actually still move in a rectangle area with 138.68 level as the upper line, which should be a very important and strong resistance. CCI in overbought area and heading down suggesting potential downside correction. The bias is neutral in nearest term. Immediate support at 137.50. Break below that area should be seen as potential threat to the bullish outlook. Break above 138.68 area should trigger further bullish momentum and lead us into a new phase of bullish scenario.
The GBPJPY hit my long target at 153.20 on Friday, but whipsawed to the downside and closed significantly lower at 150.05. On my h4 chart below, we can see that 153.20 area is a very important resistance level and now you can see why that level became my target area during a bullish momentum The bias is bearish now targeting 147.03 but we seem to have a good support at 149.40 area. I think it’s a good idea to wait until we have a consistent move below that area before place a short position. Immediate resistance at 150.60 area. Break above that area could trigger further bullish momentum re-testing 153.20 area.
The AUDUSD so far able to move outside the bullish channel with the lower line now become a resistance. Technically, this fact opens the door for further bearish correction scenario testing 0.9090 support area but short position is not recommended at this phase and I think I will stay out from the market for now. Key resistance level remains at 0.9270. Break above that area should continue bullish momentum targeting 0.9350 area before aim for 0.9500.