EUR/JPY: Yesterday's Unexpected Strength Provides Stronger Structure

Published 11/29/2016, 11:09 PM
Updated 07/09/2023, 06:31 AM

INTRADAY CHART

EUR/JPY 60 Minute Chart

BIAS: We should see losses to 110.75-00 for gains to then reach 121.00-20 (over a few days…)

Resistance: 119.82 119.97-15 120.51 120.65-75
Support: 119.35-45 118.95-00 118.75 118.54

MAIN ANALYSIS: Hmmm… things have changed. Yesterday's strength was unexpected but now provides us with a stronger structure. The rally from 118.54 to reach 119.97 developed in 5-waves and this forms the penultimate high in this rally. It also implies a deep pullback in yesterday's rally. This should see the 118.75-00 area support. From here, we should then see a move up to the 121.00-50 area approx.

COUNTER ANALYSIS: Only an earlier break below 118.54 would suggest I have been using an incorrect structure. It would likely see losses back to the 118.10-115 area and below there to 117.30-71.

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