EURJPY:- Awaiting On A Range Break Out
EURJPY:- after falling over 200 pips the pair has reached a major barrier of support at 130.000. This could be a stop off point for the pair in which we determine the next leg of the journey. As suggested in our previous post of EurJpy that a deeper a correction was due to multiple high wick rejections to the upside indicating weakness was occurring and the sellers were dominating.
This recent decline comes ahead of the ECB Monetary Policy Meeting on Thursday and is likely to have positioned itself as a major key level.
On the bigger picture, the daily timeframe has been making a series of Higher Highs and Higher Low's. There is the possibility of a further decline back to revisit the lows of 128.000 only once the minor support zone of 129.300 is broken.
I personally will be looking out for a break of the 4HR range to consider a position, as we could see the price accelerate from this region if we fail to break below the 129.300 zones because of multiple confluences. Our favoured Fibonacci region aligns with the current market price as support.
Europe currently has its own issues and therefore may struggle to find an economical reason to gather strength but if some hawkish comments can come out of the ECB meeting to settle the nerves over Brexit and the Italian debt problems there may be a rapid recover back towards 130.800