The Daily Forecaster: EURJPY
Price: 103.19
Bias: I feel we could see a poke up to 103.53-80 before seeing a correction lower
The underlying MT direction is neutral while the daily bias is neutral. Therefore it may be better to sit out of the market or trade breaks when supported by bullish or bearish set up patterns. It is advisable to study both lower and higher time frame charts for evidence to support a trade in either direction. It may well be advisable to take profits when seen or if there is a larger break out to consider using a trailing stop to protect profits.
Consider buy set ups at: 103.85
Consider sell set ups at: 103.35-60
| Resistance |
103.28-39 |
103.53 |
103.80 |
104.31-40 |
104.87 |
105.40-69 |
| Support |
102.70 |
102.15-30 |
101.65 |
101.14-45 |
100.86 |
100.00-30 |
Daily Outlook
Gains extended above 103.12 but only as far as 103.28. From what I can see of this the implication appears to be for a move up to 103.53-80 but to end this part of the rally and provoke a correction lower. From there I suspect a correction that should initially target the 102.15-30 area for a pullback. Later look for as low as 101.14-45...
Only directly above 103.85 would see a more aggressive extension, potentially above 104.31-40… then take care and note the 104.87 projection and also the 105.40-69 area.
Medium Term Outlook
8th February: The failure to move lower has really damaged the potential triangle. Given yesterday's strong rally there is a growing argument for quite a solid rally that would eventually recycle back to the 111.59 high… Given the complexity of the balance between USDJPY and EURUSD in both price and timing I feel we still have a bit of work to do in order to clarify this potential. Certainly, I am bullish EURUSD and only slightly bearish for USDJPY so the potential is there... |
