EURJPY Weekly Technical Outlook
On the weekly time frame, price action on EURJPY is experiencing a retracement of the drop from the high of November 2014 to the low of June 2016. Seven weeks ago, a relatively big bearish candlestick kicked off a southward turn around at the 61.8 Fib zone, respecting a resistance trendline (red) from the high of November 2014. After a brief southward move, price action entered a consolidation around the 50 Fib zone which lasted three weeks. Last week, bulls attempted to keep price action in consolidation with a northward move but their attempt was mitigated by bears; this resulted in the printing of a relatively small bearish pinbar which barely inched below the consolidation area. We may expect bulls to attempt another northward pullback in the early part of this week but bears are likely to regain control of price action. The 121.760 area is a likely to be an initial target of bears.
On the daily time frame, price action is operating in a descending channel. The market was in consolidation for much of Monday through Wednesday last week. On Thursday, a big bearish candlestick took price action far below the consolidation area but on Friday bulls resisted furthermore and constrained the bears. A doji-like candlestick was printed as a result. As price action is still within a minor S/R zone, we may see further sideways move or a northward pullback before a bearish continuation.
I may be wrong. Trade safe and prosper.
KP
On the weekly time frame, price action on EURJPY is experiencing a retracement of the drop from the high of November 2014 to the low of June 2016. Seven weeks ago, a relatively big bearish candlestick kicked off a southward turn around at the 61.8 Fib zone, respecting a resistance trendline (red) from the high of November 2014. After a brief southward move, price action entered a consolidation around the 50 Fib zone which lasted three weeks. Last week, bulls attempted to keep price action in consolidation with a northward move but their attempt was mitigated by bears; this resulted in the printing of a relatively small bearish pinbar which barely inched below the consolidation area. We may expect bulls to attempt another northward pullback in the early part of this week but bears are likely to regain control of price action. The 121.760 area is a likely to be an initial target of bears.
On the daily time frame, price action is operating in a descending channel. The market was in consolidation for much of Monday through Wednesday last week. On Thursday, a big bearish candlestick took price action far below the consolidation area but on Friday bulls resisted furthermore and constrained the bears. A doji-like candlestick was printed as a result. As price action is still within a minor S/R zone, we may see further sideways move or a northward pullback before a bearish continuation.
I may be wrong. Trade safe and prosper.
KP
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