EURJPY is stuck in a range bound situation in between 130.30 and 129.20 since 4 weeks after falling from 134.20 towards 128.45. Current market conditions ought to have initiated its first wave 'a' of bullish correction and then in shape of a reversal - came down to retest the upper trend line of our bearish channel. Though EURJPY has taken an exit from our bearish channel in four hourly  and daily chart but still needs alot of momentum to push higher. Main scenario from the previous market perspective, Euros weakness had been affecting the pair with hawkish momentum and failed to provide a genuine breakout by taking an exit from our bearish channel with a bullish impulse. The market in daily after completing its bearish correction, thought to have activated bullish correction now because the bearish correction of higher degree turned into a dovish rally of 5 wave impulsive structure but that will only be confirmed after a breakout from our dovish pennant.

BULLISH AND BEARISH CONDITIONS / POSSIBILITIES :

Delta covid variant spread and China's curbs remain a concern. The dollar retreats with the Treasury yields ahead of US Prelim Consumer Sentiment data. For bullish conditions on the pair, Euro versus Japanese Yen has entered the ichimoko cloud and is in no trade zone until 130-130.20 price action is broken. Its trading below our 61.8% fibb level again and also caught by the hook of exponential moving average 50 in four hourly chart. There can be chances of EURJPY moving back down towards 50% fibb level but that would require a bearish impulsive fractal confirmation by breaking below 129.20. But the current market structure is having more of a bullish momentum to go for completing wave 'c' towards 130.50-131.40. Currently the market is also trading below our exponential moving average 50 in four hourly chart but standing above exponential moving average 200 in daily, mixed sentiments cannot clear the way for either of the bulls or bears and awaited breakout would be the only option left. 

EURJPY

Aug 13 2021