EUR/JPY Update: Bullish setup

 Yen has been weakening across the board. The differences in trend phases versus most FX majors is still significant though. Recent developments versus the Euro make this cross rather interesting from a risk/reward perspective, hence our trading focus on this particular Yen-pair. 

The recent pullback off the ~131 highs has left a new higher base virtually at the cloud support at 128.25. This could very well be the first step in a bullish breakout above the internal trend line and major pivots, roughly converging around  the 130<>130.70 area.

We are currently adding longs to our portfolio (30%) in anticipation of a breakout. The remaining 60% will be bought once dynamics pick up at the 130 and 130.70 levels. Stops can be maintained nearby at 128-even. Our focus is on 133 (minor) and 136.40 thereafter (major projection).

  • Near term trend: positive
  • Long term trend: neutral
  • Outlook: bullish setup unfolding, positive > 130
  • Strategy: add to longs / hold-long
  • Support: 128.00 / 126.15 / 125.50
  • Resistance: 130.00 / 130.70 / 133 / 136.40*
  • Outlook cancelled/neutralized below 128.00

Daily chart Euro / Japanese Yen (EUR/JPY)

23 May 2018 – Correction extends

A much deeper correction is expected now that the intraday support at 129.20 has been taken out convincingly. 126.30 (cloud support) and 123.40 are the next levels to watch out for on the longer term.

Interestingly, intraday down side projections come in at 123.95 which is roughly equal to the weekly support cluster, making it particularly reliable.

  • Near term trend: negative
  • Long term trend: neutral
  • Outlook: extended correction, possible long-term bearish reversal
  • Strategy: trading short or avoid
  • Support: 126.30 / 125.40* / 123.95*
  • Resistance: 131.20 / 132.25+
  • Outlook cancelled/neutralized above 131.20

420-minute Intraday chart Euro / Japanese Yen (EUR/JPY)