Euro versus Japanese Yen has moved precisely in accordance to our analysis/ signal published on 19th August, anticipating a strong bullish pull back from our 50% fibb retracement level and 128.0 critical price action support zone. Our signal was published with 128.20 as entry price, 127.57 stop loss and 130.47 as take profit zone while currently the pair is trading at 130.38. Our hawkish expectations were specifically based on EURJPY standing above exponential moving average 50 and 50% fibb retracement level in weekly along side all the technical factors were indicating for a sharp bullish correction, so we positioned our buys from the current market price towards 129.50 at first, after that the structure formation and accumulation in that zone provided us with the confirmation of 130.26. Currently the market has entered the ichimoku cloud by breaking above Senkou Span B along with a strong bullish candle being formed in daily above exponential moving average 50. 

BULLISH AND BEARISH CONDITIONS / POSSIBILITIES :

EURJPY has entered overbought conditions in one and four hourly time frame with relative strength index trading at 72.8 and 76.9, this indicates that a bearish correction will be taking place on a temporary note that might drive the pair a bit lower towards 129.60-129.80 before any further continuation. 130.26 - 130.60 is a critical resistance zone which will be the deciding point for EURJPY further projection, we are denoting the aforementioned level as no trade zone until a prominent breakout is found. 130.60 is our weekly and monthly resistance which if broken on the upside will drive the market towards 131 and 132.0. Unless and until the market provides us with a bearish closing below 61.8% and 50% fibb retracement levels, EURJPY stays in the hawkish trend. 

EURJPY

Sep 01 2021

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