Trading Scenario: As we analyzed from last week, EURJPY is still trading around 113.00 to 113.35 critical level. For the price to decide direction, it has to break this level. Last week it did break that level to upside and made new high of 114.72 but failed to sustain above that and on friday it fell below that level. Now it is currently trading just below that critical region of 113.00 to 113.35.
If we look at last weekly closing it turned out to be a Doji with a big spike to the upside. It failed to close above that 113.35 level. EURJPY is still in a short term bullish channel. However the weekly trend is still bullish, it has made a higher high and higher low, but caution of weekly candle should not be ignored. Now we have our trend reversal level at 112.00.
If price wants to continue further lower it must trade below 113.00 to 113.35 level. We must now closely look into price behaviour at 113.00 to 113.35 level before making any decision about getting into any trade.
If EURJPY continues to trade below 113.35, price may push to 112.00 to 111.00 levels where bullish channel support comes in.
If price breaks above 113.35 level doors will open up targeting 114.00, 114.70 followed by 115.70
Important Note: 113.00 to 113.35 is a critical level to watch on this pair.
Entry Strategy: Watch for price to trade below 113.35 level to go short or break above 113.35 to go long.
Trade Suggestion: Our suggestion is to wait for break of 113.00 to 113.35 level and go long targeting 114.00, 114.70 followed by 115.70
Alternate Trade Suggestion: If Price trade below 113.00 to 113.35 go short targeting 112.00, 111.00 where bullish channel support comes in.
Weekly Trend Direction: Bullish
Weekly Trend Reversal Level: 112.00
Key Support Levels: 112.00, 111.00, 109.00, 108.00
Key Resistance Levels:113.30, 114.78, 116.50, 119.08
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