- Stop loss 136.63
- Entry level 135.03
- First Target at 133.15
- Next targets to test at 132.37, 131.71
EUR/JPY rises to as high as 135. So far it is seen finding strong resistance limit to the upside on the ranging market mid-way and has been rejected on the daily chart with a pin bar rejection where support holding pair breaks levels with bearish pattern.
The pair can see some correction to the downside. However a retest at 135.03 will confirm the reversal to the downside, a break of which should be target at 133.15. Once it passes the level to test at 132.37 and later at 131.71 levels, we’d expect more range trading between 135 – 133 areas but recent break of support with pin bar and price action suggest pair to make new lows.
On the upside a break of 136.63 will dampen our view of downside. Outlook Intraday remains bearish for the week on the pair.
- PPI, Consumer confidence Index,
- Unemployment data, Exports and Imports Data for Euro
- Monetary Policy Meeting Minutes.
- Leading along with Lagging Index,
- Japan Bonds, Stocks with Nomura/JMMA Manufacturing PMI
Area of Interest
- Support level at 135 broken with pin bar.
- Bearish pattern once the support levels broken are stronger and look for new lows.
- Pair finding resistance on trend line and price action holding the levels.
- Key area to target to the downside shall be at 131.83 also the fib level of 61.8%.
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