In our published analysis on 1st Sept, we anticipated that the market had entered overbought conditions in one and four hourly time frame with relative strength index trading at 72.8 and 76.9 which indicated that a bearish correction will be taking place on a temporary note which might drive the pair a bit lower towards 129.60-129.80 before any further continuation. Another factor for selling EURJPY was 130.60 - a critical price action zone which is suppose to be the deciding point for EURJPY further projection because of its new designation as monthly and weekly resistance. Those who went for selling EURJPY from 130.60 must take an exit from selling positions if the market reverses with a bullish closing above exponential moving average 200 and 50 in daily. At the moment, EURJPY is struggling to break below exponential moving average 50 in daily and exponential moving average 200 in four hourly time frame while closing below 130.26 price action. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

From the current market perspective Euro versus Japanese Yen is emending its relative strength index by completing its awaited bearish correction and to retest the major resistance turned support at 61.8% fibb retracement level 129.52. As far as the pair stays above exponential moving average 200 in daily and weekly support 129.47 - a fractal impulsive closing above the aforementioned zone should be considered as better opportunities for executing bullish entries. In worst case scenario if EURJPY breaks below 61.8% fibb, our next target would be 50% fibb at 128.46. The Senkou Span B of the ichimoku cloud is also supporting the current resistance at 130.26 so its better to wait for a bullish continuation of trend as we get a fractal above 129.52. 

EURJPY

Sep 09 2021