EUR/JPY Changed Little
Price posted some gains on Monday and maintains a bullish perspective because is located above some important dynamic support levels. Could come down to retest the support lines before will try to climb much higher.
EUR/JPY shows some exhaustion signs on the daily chart, but right now we don’t have a reversal sign. We have a bearish divergence on the Daily chart, but is premature to say that we’ll have another leg lower. Price could decrease again if the Nikkei stock index will decrease, today has jumped higher and is trading near the 20058 major static resistance.
JP225 is narrowing on the short term, a further increase towards the 20320 previous high will force the Yen to depreciate versus its rivals.
The Yen needs a bullish spark to be able to take the lead again, the Japanese Current Account could increase from 1.40T to 1.51T in June, while the Bank Lending could increase by 3.3%, matching the 3.3% growth in the former reading period. The Economy Watchers Sentiment could drop in the pessimism territory if will decrease from 50.0 points to 49.8 points.
You can see that has failed to stay much above the 130.76 previous high and now has come back down and could retest the median line (ml) of the minor ascending pitchfork. We have a bullish bias as long as it is trading above the median line (ml) and above the upper median line (UML) of the major ascending pitchfork, only a valid breakdown below these obstacles will open the door for a broader decrease.
EUR/CHF Stabilized In The Green Zone
EUR/CHF increased on Monday and continues to stay in the buyer’s area. The rebound invalidated the Friday’s breakdown below the fourth warning line (WL4). However, the rate could still come down to test and retest the WL4 and the second warning line (wl2) of the minor ascending pitchfork.
The current drop was natural after the failure to reach the confluence are formed by the third warning line (WL3) of the major ascending pitchfork with the second warning line (wl2).
GBP/JPY On A Declining Path
The downside momentum was paused by the median line (ml) of the minor descending pitchfork. Now could come back to retest the upper median line (uml) before will drop much deeper. We may have a selling opportunity if will retest the broken 150% Fibonacci line (ascending dotted line), the next downside target will be at the uptrend line.
By Olimpiu Tuns
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