Daily Market Report – EUR/JPY upside thrust underway August 02, 2017

02EURJPY

EUR/JPY eyeing more gains

The pair extends the latest gains and looks motivated to approach new peaks in the upcoming days. It is strongly bullish and is very close to stabilize above the 131.00 psychological level. EUR/JPY further increase was confirmed in the morning when has managed to jump above the 130.76 previous high. I’ve said in the previous analysis that we’ll have a great buying opportunity if the rate will make this move.

The Yen drops again as the Nikkei stock index has opened with a gap up today. JP225 is pressuring the 20058 major static resistance again, so we have to be patient to see what will happen because is narrowing on the short term.

Technically, the Nikkei was somehow expected to drop towards the 19700 static support, but looks like that the buyers are still in the game. Another Nikkei’s rejection will send the Yen higher again versus all its rivals, but a valid breakout followed by an increase towards the 20320 previous high will ruin the Japanese currency. The Yen ignored the Japanese Consumer Confidence, which has increased from 43.3 to 43.8 points, beating the 43.5 estimate.

EUR/JPY managed to climb as much as 131.17 in the morning, the next important upside target is at the 150% Fibonacci line (ascending dotted line). Should climb towards new peaks after the failure to retest the median line (ml) of the minor ascending pitchfork. The upside momentum was expected after the retest of the upper median line (UML) of the major ascending pitchfork and the 32.8% retracement level.

The next major upside target is at the upper median line (uml) of the minor ascending pitchfork, will approach this obstacle only if the Nikkei will close above the 20320 previous high.

EUR/CHF another breakout attempt?

Price has found support at the first warning line (wl1) of the minor ascending pitchfork and now could approach and retest the fourth warning line (WL4). Is bullish and could try to take out the dynamic resistance (WL4). Only a drop below the second warning line (wl2) of the major ascending pitchfork validates a further drop.

EUR/USD is this a bearish signal?

02EURUSD

We had a false breakout above the upper median line (uml) of the ascending pitchfork, price has come back to retest the resistance level. A rejection will send the rate towards the 1.1712 static support and towards the median line (ml). However, you should know that the perspective is bullish despite a minor decrease.

By Olimpiu Tuns

Market Analyst

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Source:: Daily Market Report – EUR/JPY upside thrust underway August 02, 2017

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