There is a bit of Yen weakness around tonight and this is helping to affect a pullback on the EUR/JPY and GBP/JPY following on from their significant fall over the last few weeks. In this post I look at various targets for any continued pull back or continuation on both pairs.
EUR/JPY 4hr: the E/J has fallen over 670 pips during the last three weeks and so some pause or pullback, even as part of bearish continuation, is not out of the question. The 134 level is a key S/R zone and price is currently up testing that region now. However, if price continues to pull back past there then I would suggest keeping an eye on the 136 / 136.40 region as this is hugely congested with potential resistance. It is the region of the previously broken triangle trend line and price often pulls back to test broken support. It is also the area of the 61.8% fib of this latest swing low move, the monthly pivot and the 4hr 200 EMA:
EUR/JPY daily: this large triangle was broken last week and so a pull back to test this broken support would not surprise:
EUR/JPY weekly: any failure to continue up past 134 would suggest this might just be a test of broken support before bearish continuation. If so, the 115.5 region is the 61.8% fib of the weekly chart’s swing high move and would make a decent area to target for any bearish follow through:
GBP/JPY 4hr: this is much the same as for the E/J except that the recent fall has given over 1,300 pips! Price action is currently testing the key 184 level again but any bullish continuation might target up to the 61.8% fib region near the 189, monthly pivot and 4hr 200 EMA:
GBP/JPY daily: the 184 is a major S/R region and price is back there now:
GBP/JPY weekly: any failure to continue higher might suggest a resumption of bearish momentum. If so, keep an eye on the weekly 200 EMA near the 167 S/R region and, after that, the 61.8% fib near 148:
Summary:
EUR/JPY:
- bullish targets: 134 and then 136.40.
- bearish targets: 115.50.
GBP/JPY:
- bullish targets: 184 and then 189.
- bearish targets: 167 and then 148
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