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Bear Cycle In Play

EURJPY TECHS
  • RES 4: 163.72 High Nov 27
  • RES 3: 162.25 High Nov 29
  • RES 2: 160.97/161.86 High Jan 25 / 19 and the bull trigger
  • RES 1: 160.34 High Jan 30
  • PRICE: 159.32 @ 07:00 GMT Feb 02
  • SUP 1: 158.08 Low Feb 1
  • SUP 2: 157.21 Low Jan 9 and a key near-term support
  • SUP 3: 156.08 Low Jan 4
  • SUP 4: 155.08 Low Jan 2

A bullish trend in EURJPY is intact, however, the current bear cycle remains in play. The cross has cleared both the 20- and 50-day EMAs and this signals scope for a deeper pullback. 157.21, the Jan 9 low, presents the next target for bears if the recent run of pressure extends. For bulls, a resumption of gains would refocus attention on 161.86, the Jan 19 high and bull trigger. A break of this level would reinstate the recent bullish theme.

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