EURJPY:- Breaking 132.000
EURJPY:- It seems as though the range low of 130.000 came out on top as the favoured bearish bias was blown away by a reversal formation upon the Weekly support level of 130.000. It may seem as though we are getting closer to a clearer directional bias, as the pair is currently breached the monthly key level of 132.000 that has acted as such a strong resistance barrier for the pair.
Tuesday's closure would have been the first bullish candle to breach the key level since February 20th and therefore holds significance in the direction that the pair may be heading.
As highlighted on the chart you can see an ascending wedge formation, If the daily candlestick can close out of this formation it is likely to push higher and retest the next weekly key level of 134.000. I would expect to see price behaving in a breakout, retest, continuation manner and therefore I will be keeping an eye as price edges closer to the daily resistance of 133.100 for a swift 100 pip retracement before an overall continuation can occur.
Previous:- from our previous analysis the pair once again failed to maintain a break above 132.000 as the resistance region acted as the determining factor in price rejecting a certain key price point. Having stalled for the earlier part of last week Eurjpy attempted to break higher only to be rejected and dumped 200 pips in the latter stages of the week. Looking at a daily time frame the pair looks range bound having made a ceiling at 132.000 and a floor of support at 130.000. My particular bias for the pair remains bearish with higher timeframe analysis laying heavy on the pair creating the necessary momentum expected as long as we maintain below 132.000
The price is being guided by the Weekly MA as it has once again tested and rejected on a higher test of this level. Last weeks closure indicated that a further decline was possible upon a break of 130.000 and the downside support level of 128.000 would be an immediate downside target if a break and closure can occur.
With a series of Lower highs indicating that price is trending nicely I will keep an eye out for how Tuesday's daily candle closes to provide clarity in which particular setups are available.