The Euro lost grounds versus the Japanese yen after breaching the 38.2% correction at 121.63 making the next target the 119.43 level. The sharp decline has started to lose momentum now as the pair rebounded from the 120.50 level to slightly increase in an attempt to exit an oversold area as seen on the different momentum indicators on several time frames. We expect the pair to correct to the upside to 121.63 before reversing back to the downside to reach the 76.4% correction at 119.43 as direction indicators still support the downside movement.
Support 120.50 120.14 119.87 119.43 119.00
Resistance 121.41 121.61 121.92 122.20 122.59
The GBP/JPY pair continued to slide further after breaching the 61.8% correction at 137.04 to open the way for the pair to reach its first target at 135.70 which is the 50% correction and the 50 day MA on the four hour charts. Although recording a low of 135.50, the pair failed to hold the momentum resulting in a rebound to currently trade above the 136 level. As we see on the stochastic indicator, the pair is being oversold suggesting an upside correction as it is also supported by the ADX indicator however, as the direction seems to be weak, we don't expect the pair to extend gains past 136.73.
Support 135.92 135.70 135.37 134.72 134.29
Resistance 136.46 136.73 137.04 137.42 137.72
Despite being in an oversold area as seen on William's percent range and the stochastic indicator, the pair continued to decline reaching the 61.8% correction for the ascending wave at 0.8841 before rebounding to currently see trading above the key resistance for the descending channel. We don't expect to see much movements today as volume on the MACD indicator on the daily charts has decreased yet any sideways movements could be accompanied by a slight incline targeting levels above the 0.89 level
Support 0.8860 0.8841 0.8821 0.8806 0.8791
Resistance 0.8900 0.8921 0.8946 0.8960 0.8985