Weekly
• Last Candlesticks pattern: Window
• Time of formation: 24 April 2017
• Trend bias: Up
Daily
• Last Candlesticks pattern: Hammer
• Time of formation: 18 May 2017
• Trend bias: Up
EUR/JPY – 131.26
As the single currency has continued edging higher after resuming recent upmove, suggesting medium term uptrend from 109.49 low is still in progress and may extend headway to 131.50-60, then 132.00-10, however, loss of near term upward momentum should prevent sharp move beyond previous resistance at 132.33 and reckon 133.00-10 would hold from here, risk from there has increased for a correction to take place later.
On the downside, whilst initial pullback to the Tenkan-Sen (now at 130.14) cannot be ruled out, reckon downside would be limited to 129.50-55 and support at 128.57 should hold, bring another rise later. A drop below support at 127.44 would defer and suggest a temporary top is possibly formed, bring test of 127.00, break there would add credence to this view, then retracement of recent upmove would take place for weakness to 126.50, then towards 126.00-10, however, reckon previous resistance at 125.82 would hold from here, bring rebound later.
Recommendation: Buy at 128.65 for 131.50 with stop below 127.65.
On the weekly chart, as the single currency has continued trading with a firm bias after resuming recent major upmove from 109.49 low, reinforcing our bullish view for this medium term rise to extend further gain to 131.00, then 131.50-60, however, overbought condition should limit upside to previous chart resistance at 132.33 and reckon 133.00-10 would hold from here, risk from there is seen for a retreat to take place later.
On the downside, although initial pullback to 129.50-60, then 128.90-00 cannot be ruled out, reckon 128.50-60 would limit downside and euro shall head north again from there to aforesaid upside targets. A drop below support at 127.81 would defer and risk test of the Tenkan-Sen (now at 126.59) but a weekly close below there is needed to signal a temporary top is formed, bring retracement of recent upmove to previous resistance at 125.82 (now support) but downside should be limited to 125.00 and reckon 124.00-10 would remain intact.
