We had an article published on Euro versus Japanese Yen on 20th July which showed that the pair was still gaining onto bullish momentum in order to step itself out of the oversold conditions and complete its hawkish correction of minor degree before providing us with any further outlook. EURJPY is struggling below our targeted destination according to the previous article published and seems to be loosing its strength on providing us with higher highs on daily chart. Relative strength index is trading at 48 and MACD is also portraying signs of weak bullish momentum on daily chart. According to wave theory, the pair seems to have completed its bullish correction of minor degree and is failing to break above our daily and weekly resistance. 61.8% fibb retracement level is another blockade in the path of EURJPY from excelling any higher. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

We are anticipating that Euro versus Japanese Yen will be taking a reverse from the current market price and continue its main bearish trend by reaching firstly to levels of our weekly lows i.e  128.38. The supply and demand zone is neutral in this region but the bears maybe 10% more in strength as compared to bulls in moving the market in their favors. 131.0 is a major price action level which acted as the first bearish breakout zone creating higher lows in June and the market makers might find some excuse to drive the pair upto that level as a decisive move or a higher degree of bullish corrective structure with wave 'c' ending at the aforementioned level. Yet again, this zone has exponential moving average 50 in daily and will become a factor to provide bears some strength of taking over the market with selling EURJPY till its first target as 128.80

EURJPY D1

Jul 30 2021