EUR/JPY

Hi guys,

I'm not new to Forex Factory although my number of posts suggested otherwise. In this thread I will share my weekly outlook. Please feel free to share yours as well so traders can get a picture of the week ahead for the currency pair. Happy trading.

After two weeks of good rally for the Euro, the pair has turned to the downside where the price briefly breached the 161.10 resistance and then quickly reversed. If the rejection at 0.618 Fibonacci level from 166.65 to 152.11 holds true, I expect the movement to turn to the downside. A failure to close above the 55-EMA on the weekly chart also proved that the bears have come back for another push towards 152.11. Immediate support seen at 156.84 area while a break at 155.64 could see the price action retest the low at 152.11 (that's about 500 over pips from the spot price now). On the upside, 158.57 zone likely be the next immediate resistance. Bias on the downside for the next few days.

Keeping my eye on the 156.40s for the next break down.
Same thing at 204.30s for G/J.

It will break all the way down sooner or later. Actually, a combo of eurusd and usdjpy techs would lead us to a theory where eurjpy could drop a few thousands pips. But we are at early stages, letsee this how it will unfold.

Yeah agree. In the long run it could go down thousands pips. We could also see short term opportunities to catch counter-trend while still on the way downwards.

What are your thoughts on the gap to be filled?

Not sure. USDJPY looks correcting oversold extremes, lets see how it goes. I've missed the run in EURJPY but welcome any bounce to get short in the trend. Hope it goes up

EURJPY could reverse back down soon. An indicator i have on my screen is showing a strong possibility for a reversal back down soon (15 min chart. see attached). In other words, the small uptrend may be shortlived. It is finding strong resistance at the weekly M2 at 156.93. We will see where it goes from here.

Chart shows skull and crossbones which is my way of showing myself that there are conditions present that could indicate the trend is reversing. The indicator is fairly accurate. Notice the separation in the lines inside the pink box, this is also a strong indication that something is about to reverse.

Long now would be very risky.

Here I can see a little consolidation near 126.4 support, if we break it, I expect the price to go to the nearest resistance at 130.5