Financial Advisor

Cautiously Bearish on weekly EURJPY below 104.97

A bullish daily Hammer at 101.93 in EURJPY, last Monday’s 9 year low, signalled a temporary bounce and did occur with a 3 Big Fig improvement. But with bounces also signalled as temporary selling opportunities and with the longer-term forecast negative, investors sold into strength on Friday for sentiment to deteriorate by 2 Big Figs from the week’s 104.97 top.

This is negative and signals continue to point lower this week below 104.97, but until Tuesday’s low is broken the call is a cautious one. The immediate objective is 102.84, Tuesday’s low, with a move through this point targeting 101.93, last week’s 9 year base and then towards 101.10.

The risk to this call, however, would be with buying through a stop at 104.97, last week’s high, a cautiously positive signal temporarily improving sentiment to 105.52, the 21st Sep top and then towards 106.16, the 2 week high trade.

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