USD/JPY sideways again yesterday holding both 106.50/30 and 106.85/95 perfectly.
However, we are breaking down overnight as I write.
EUR/JPY we wrote: holding resistance at 116.90/117.00 to hit and hold the first target of116.35/25 but we could continue lower today to 116.10/00, 115.80 & support at the 115.55/45 swing low.
The pair collapsed as predicted to bottom exactly at the 115.55/45 target but we continue lower overnight as I write.
Today’s Analysis
USD/JPY tests support at 106.50/30 overnight. A break below 106.20 is a sell signal targeting 106.00/105.90 & 105.70/60 before support at 105.30/20 for some profit-taking on shorts.
A bounce from 106.50/30 meets a selling opportunity at 107.00/10 with stops above 107.30. A break higher is a buy signal.
EUR/JPY breaking support at the 115.55/45 swing low is an obvious sell signal for today targeting 114.90/80 & 114.40/30, perhaps as far as 114.00/113.90.
Bulls need the pair the pair to recover quickly above 115.55 for any chance to regain control (which is unlikely in bear trend despite short term oversold conditions), targeting 116.00/10. Expect are 116.45/55.
Trends
- Weekly outlook is neutral
- Daily outlook is neutral
- Short Term outlook is negative