EUR/JPY: 132.000! This level has held strong for the past 18 days with multiple attempts to break through it. Price has been unable to sustain any downside pressure that has attempted to break this level of support. We saw an extreme and rapid rise from 132.000 with the daily candle increasing 100+ pips to the upside engulfing the prior area of consolidation. The Daily closure of the candle retested the previous closure highs at 133.100 and has gone on to retest the daily area of resistance at 133.500. What to expect next? From a technical perspective, we could expect the price to continue to the upside. We have seen a series of H.H's and H.L's that we could now be expecting the next leg to the upside after the bullish reaction from Wednesday's price action. We have to be aware of 133.500 acting as a daily resistance and the Weekly key level of 134.000. Furthermore, a Strong weekly closure could send the price higher, with 136.000 a longer-term ambition for the pair. However. price has maintained its self between 132.000 and 133.500 for 4 weeks. If we take into account the previous staircase movement we might expect the pair to spend another week or 2 trapped before starting it's next leg to the upside. It will be very important how the week closures commencing 20th of October. Stay tuned for those trading setups in the Technical Hub.
Previous:- Since breaking 132.000 we soared to a new high at 134.445 gaining another 200 pips from breaking the all-important 132.000 level. We can see price made a rapid correction and has since stalled in a 100 pip range. EurJpy has been sideways for 9-10 days and is awaiting a break in either direction to confirm its next directional bias move. The Euro since the turn of the year has seen dramatic gains, 1950 pips since its low of the year. We can expect this momentum to continue heading towards the 4th financial quarter as the price has not been this high against the Japenese yen since December 2015. If we could break past it Minor resistance zone of 133.000 the pair could go and reach its previous highs and continue its overall strength. We need to be aware that the accumulation of price will cause this pair to move violently in the particular direction of its break.