EUR/JPY Continues It's Bullish Ways

EUR/JPY   – currently trading @ 124.29

Bias: Bullish

Commentary:

We mentioned in our last report 123.11 as being the next level of resistance. Now that it has broken above our upper range the next levels are 124.662 and 126.831.

The new range is 122.111-124.662, where 122.111 serves as a support. We need to see how it closes, but the pair is acting very strong, and we don't expect any large retracement, only small pullbacks possible once 124.662 reached. We would recommend taking some profits at 124.662 level in order to re-enter later. On the other hand there are macro factors that we mentioned in a previous report, which can potentially affect technical levels of all JPY pairs. In other words big violent moves possible in either direction.

Economic events that can influence direction:

USD/CAD    - currently trading @ 1.0301

Bias: Bullish-Neutral

Commentary:

The new range to watch right now is 1.02616-1.03166.

There is a possibility that we formed a double top. We suspect that if support of 1.02616 breaks we may trade all the way down to 1.01309. That number can change, but this is what the charts show right now. The smaller timeframes – 15, 60 minutes charts – show some troubling signs reinforcing our view of a retracement, but daily chart is still very bullish. So, there is a possibility of retracement before going higher.

The pair is trading in the range, and no significant information can be added until it trades outside of that range. We need to see how the levels hold first.

Economic events that can influence direction: