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Bullish Engulfing Reversal?

EURJPY TECHS
  • RES 4: 127.88 0.618 projection of May - Jun rally from Oct 30 low
  • RES 3: 127.49/50 High Jan 7 / High Mar 1, 2019
  • RES 2: 126.87 High Jan 12
  • RES 1: 126.25 20-day EMA
  • PRICE: 126.15 @ 14:02 GMT Jan 19
  • SUP 1: 125.09 Low Jan 18
  • SUP 2: 124.80 100-DMA
  • SUP 3: 124.56 50% retracement of the November - January Rally
  • SUP 4: 123.91 2.0% 10-dma envelope

EURJPY has strengthened today and found support off yesterday's low of 125.09. Today's recovery is taking on the appearance of a bull flag - a strong daily close would confirm - and if correct signals a potential reversal. More importantly, this would also suggest the end of the recent corrective pullback that saw the cross clear a six-week channel base. Further gains would open 126.76, Jan 13 high. On the downside, sub 125.09 resumes the downtrend.

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