EURJPY:- How Much Further Can EJ Go!
EURJPY:- The pair has looked extremely bearish over the last couple of months after the significant fall in price back in February 2018.
Having made a multi-year high at 137.500 the price has fallen almost 1300 pips since then making a current low of last week at 124.600.
The weekly Candlestick formation did see a potential retracement from the low having pulled back towards the major level of 128.000. As we lead into June halfway through the year, The overall momentum remains bearish, however, we need to be looking at particular key levels of resistance in the immediate future for a retracement to occur before expecting the continuation to occur. Currently trading just above 128.000 this will be the critical region we could keep an eye on for a reversal to occur. I personally favour a slightly deeper pullback towards the 129.355 level as this coincides with my favoured Fibonacci region. I will then look for price action to present us a reversal formation to suggest the next directional bias.
On Friday the 8th of June we have the Japanese Yen high impact data release that may cause additional volatility, If a better than expected figure for Q1 GDP is to be released we may see the continued strength against a lot of the major currency pairs.