In our previous forecast, we were looking for the best price to jump in for the expected bullish rally.
The price moves in a corrective wave and hit the support level of the symmetric triangle which was discussed.
We are still looking for bullish movement from the current price.
I am sharing weekly and daily technical analysis below, it may help to get an overall idea about the next movement.
EURJPY Weekly Technical Analysis
The price is following and moving in a symmetric triangle formation in a weekly chart. We will look for the confirmation of bounce before entering in a bullish trade. Current market price is 126.20 and movement above 129.50 may confirm the bullish movement and could take the price towards its resistance level 132.50 and then 135.00 in case of extension.
Alternately if price fails to bounce and break the support level of the symmetric triangle, this will the earliest signal for bullish invalidation and may take price towards 115.00 however the chances for this bearish breakout is low.
We will look for the confirmation of bearish trade, if price breaks and close below 124.50
Please have a look at the weekly EURJPY Technical Chart below, I have mentioned the possible movement scenario and the alternative breakout confirmation zone.
EURJPY Weekly Technical Chart
EURJPY Daily Technical Analysis
A small double bottom formation spotted at daily EURJPY Technical Chart and it could be the edge for bulls to take action for the expected bullish rally. The support of double bottom is at 124.75 and movement below 124.50 may invalidate our bullish thoughts.
We will look for an earliest signal for the bounce confirmation. If price bounces from 124.70 and closes above 126.50 in a daily candlestick. This will be the signal for bullish movement and targets are same as per weekly chart 132.50 and then 135.00 in extension.
Alternative if price break 124.50 level, this will lead the price towards bearish confirmation and may touch 115.00 in coming weeks.
Please have a look at the Daily technical EURJPY chart below, I have mentioned possible next movement diagram and target zone.
EURJPY Daily Technical Chart
EUR JPY SUPPORT & RESISTANCE LEVELS
Support 1: 124.75
Resistance 1 : 126.50
Resistance 2 : 132.50
Resistance 3 : 133.00
Note: Never risk more than 2% of your capital in a single trade and always trade with proper money management plan.