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EURJPY Week Analysis commencing 10/12/2017

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  • EURJPY Week Analysis commencing 10/12/2017

    EURJPY Week Analysis commencing 10/12/2017

    The 8MA has proven to be a solid support for the Weekly candlesticks, with all respecting it. The last 2 weeks have been bullish wick rejections of the MA. Currently Im on trade long entered last week. Expecting price action to rally to the upside in line with the long-term bias. A higher Low has potential been formed on the daily, with price respecting the 0.618-0.78 fibb levels. Price to continue its bullish momentum up to weekly level 134.000, followed by the upper bound of the recent daily range 134.38 which is the current higher high and my first upside target. Then potential up to daily key level 135.05 which coincides with the fibb 0.27 extension (Second target). 4H chart shows MAs have crossed over to the upside as well as a break of the 4H CTL, with a prior candle having broken MAs to the upside. Break of weekly level 134.000 along with other bullish confluence offers more long entry opportunities.

  • #2
    By the end of the week, the pair had recovered to 135.39. Other factors strengthening the euro include the recently published minutes of the ECBs latest meeting on monetary policy as well as the breakthrough in coalition talks in Germany. This news pushed German bond yields up, bringing the euro along with them. The minutes revealed that the ECB may start curtailing is QE program sooner than planned.

    After buyers broke through the 134.50 resistance and reached their intermediate target of 136.00, the road towards 139 opened up (162% of the 114.85 124.08 range). We could see a pullback before the rally recommences. If the price exits the 1-1 channel, the rally will not resume.