EURJPY Correctional Uptrend In Progress

Nenad Kerkez

Strong Yen is not good for Japanese exports and Japanese Finance Minister Taro Aso repeated on Monday that Tokyo is ready to intervene if Yen moves start to hurt the country’s trade and economy.

Technically, EURJPY is showing a correctional uptrend where W bullish pattern ( If it was double bottom it would qualify for Adam and Adam ) is showing a good confluence with L4, 38.2 support and EMA89. That qualifies enough for POC within 123.40-60 zone. Inner trend line is intersecting L5 so 123.05 should hold if the bulls want to sustain the correctional move.

Targets are 124.57 (strong resistance) and only above we could see 124.90 and 125.40. Have in mind that this is a correctional rally and sellers could show at any of these bullish targets (124.57, 124.90 and 125.40).

EURJPY 4 Hour Chart

EURJPY 4 Hour Chart

Source: admiralmarkets.com

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