The EURJPY had a moderate bullish momentum yesterday and we do not have a significant technical movement. My technical focus remains at the trendline resistance (orange), as you can see on my h4 chart below. At this phase, that trendline is the key resistance area. As long as the pair move below the trendline, I still prefer a bearish scenario. However, once price break above the trendline the bearish scenario could be in serious threat. I still prefer to stay away for now as we are still in no trading zone. Immediate support at 131.20. Initial resistance at 132.40. Break above that area should trigger further bullish momentum and diminish my bearish outlook.
The Hammer formation gave us a valid bullish correction yesterday, topped at 143.94 and closed at 143.82. There are only 2 ways of interpreting the hammer in this current situation : a bullish reversal or just a normal correction. I think the key level area to determine which one from those 2 option is valid is 146.73 area. As long as the pair stay below that area, any bullish movement should only be seen as normal correction. But if price break above that area, bullish reversal scenario will be confirmed. I think I will keep stay out from the market now. Immediate support at 142.70 followed by 141.50.
The AUDUSD made indecisive movement yesterday, but there has been some upside pressure early today in Asian session. On daily chart below we can see that after had a significant bullish momentum since March and peaked at 0.8787 the pair now is consolidating, moving between 0.8787 – 0.8500. I see no significant bearish reversal signal so far, so I still prefer a bullish continuation scenario. However, I think we better wait a consistent move above 0.8787 before start to place long trades. Short trades are not recommended at this phase. Immediate support at 0.8675. Break below that area could trigger further bearish momentum testing 0.8500.