EURJPY Weekly Technical Outlook
The EURJPY market experienced a strong bearish move in the latter part of last week. The weekly time frame printed a bearish candlestick with over 800 pips of southward move to the 117.850 support zone before a northward retracement of around 600 pips, leaving a long lower shadow. Price action is currently located in a breached support zone. Giving the swiftness of the northward retracement, we are likely going to see a retest of the 117.850 area in the next few days. Any attempt by bulls to take price action further northward is likely to meet resistance in the form of a descending trendline (magenta) from August 2018.
On the daily time frame, last week Wednesday, price action moved southward of a horizontal channel (gold), making over 700 bearish pips before bulls seized the initiative on Friday to move it back northward and about 140 pips to the channel support. Much likely we may see bulls take price action a bit further northward, perhaps to retest the channel support before any southward turnaround.
Price action on the H4 time frame is disposed northwards, respecting a minor ascending trendline (blue). Technically, the move appears to be corrective in nature. A break of the ascending trendline (blue) by price action on a 4-hourly basis plus its retest producing a bearish setup is likely to provide a feasible sell trading opportunity. On a short-term basis, bulls are favoured to control price action, but on a medium-term basis, bears are technically favoured.
I may be wrong. Trade safe and prosper.