Euro versus Japanese Yen broke above 130.26 major resistance zone on 2nd Sept but failed to rally higher for any more gains and fell below 61.8% fibo retracement level on Euros weakness. 128.0 is one of our major weekly support zones with 50% fibb retracement level also situated here which the pair failed to break below and was bound to take bullish reversal from the aforementioned price action. Exponential moving average 50 in weekly time frame became another reason to provide hawkish sentiments to the pair by creating a bullish engulfing candlestick in daily time frame, indicating that EURJPY is moving towards exponential moving averages 50 and 200 on the daily chart at 61.8% fib level i.e 129.75. According to elliot wave pattern, the pair had completed its 5 wave bearish structure in the four hourly time frame - ending at 128.0 and is now calling for a bullish corrective wave formation that might push the pair towards exponential moving average 200 in four hourly chart.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

For the bullish scenario on the intraday time frames to be achieved, the pair needs to break 129.50 - 130.20 because these are our weekly resistance zones and are a must to be broken above for continuation of bullish trend towards 132.0 as its next targeted destination. We can also see MACD on the daily chart, shifting its trend from bearish to bullish on a temporary note but we will have to wait for an impulsive fractal to be formed before projecting for any further gains. On the bearish side, 128.0 is our main price action support on the weekly chart - which needs to be breached to open doors for further dovish rally towards 126.50 and weekly exponential moving average 200 at 125.90. 

EURJPY

Sep 23 2021