EURJPY Weekly Technical Outlook
The pair has continued on an upward move after a retracement to the 127.275 area. On the weekly time frame, price action is respecting a support trendline (saddlebrown colour) from the low of June 2017. As long as this trendline is intact, a bullish bias could be maintained. The major horizontal resistance is at the 133.710 area.
On the daily time frame, price action was operating in a horizontal channel (bound in magenta-coloured horizontal lines) and made two price waves since August 3, 2017 with the second price wave hitting the distal channel line and breaking above it last week Friday. The most recent price action is respecting a mini support trendline (navy colour) and price action made a 61.8 Fib retracement to the trendline on September 5, 2017. The last trading sessions last week Friday saw the bears pushing price southward and we may expect a pullback to the trendline, perhaps to around the 130.890 area before further northward move.
Price action on the H4 time frame is respecting a support trendline (navy colour) seen on the daily time frame. However, from the most recent price action last week Friday, a resistance trendline (magenta colour) is emerging. Should price action validate this resistance trendline on Monday, we may expect bears to drive price southward, initially to retest th distal cannel line around 131.62, which is about 61.8 Fib retracement of the most recent swing high on the H4 time frame. This appears to be a more feasible price action technically as the price is too far, more than 100 pips, from the mean vaue area. Nevertheless, we may witness a period of consolidation, particularly on lower tine frames, before such a southward move materializes. As the major market outook is bullish technically, such a southward move to test the support trendline (navy colour) may be merely corrective. However, should that support trendline be broken, particularly on a daily cose, we may see a negation of the bullish bias and the next support around the 129.600 area will be exposed.
I may be wrong. Trade safe and prosper.