According to our previous article on EURJPY, published on 16th July, we forecasted that the market will reach our targeted destination at 128.60 which will be the end of higher degree corrective structure. We also labeled the major supports where there was weak supply and demand causing the pair with a sell off. EURJPY was able to trade above our daily pivot - marking a strong price action zone with its current low at 128.58.  EURJPY broke out of some major price action levels turning the supports into resistances and landing near EMA200. The market sell off and Japenese Yen gaining strength across the board took complete advantage of Euros weakness due to rising cases of delta variant. Technicals are calling for oversold condtions in H4 and D1 which would trigger a correction amongst the technical indicators for a while with bullish swings. 

BULLISH AND BEARISH POSSIBILITIES/ CONDITIONS :

RSI is trading near 30 while MACD has already created some downside depiction of momentum but that doesnt coincide enough with the huge move EURJPY made since its breakouts at 131.30 and 130.40. EMA200 is indicating healthy chances of executing hawkish trades from current market price with our targeted destination at EMA50. This move might construct itself as a correction or a bullish 5 wave move of minor degree. According to fibb retracement levels, EURJPY was able to move below 50% and leaving a wig near 38.2%. Current status is showing that the pair will retrieve upto 61.8% fibb level where our previous breakout had taken place i.e 130.47. The dovish channel is valid until the market stays within, we are expecting it to be broken with a higher degree of correction but still we will have a wave count and update our viewers with future expected directions. 

EURJPY BULLISH

Jul 20 2021