Daily Price Action

EURJPY Uptrend Starting to Show Cracks


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By Wednesday’s close, the EURJPY had given up a significant area at 134.30/40. This is the former range top that kept the pair from breaking free between September and December of last year.

Yesterday’s 133.13 close left no doubt that the key area failed to hold as support. As you may well know, former resistance becomes new support and vice versa. That’s especially true when the level is as apparent as it is here.

But sellers had other plans. The 134.30/40 area did attract a few bids Tuesday, but Wednesday’s session was a different story.

So is Wednesday’s close a significant development?

As it stands, the answer is unclear. However, as long as the EURJPY remains below 134.30/40 on a daily closing basis (using a New York close chart), the 131.40 support area is exposed.

Moreover, as long as 134.30/40 holds as resistance, the pair is vulnerable to more substantial pullbacks within this uptrend. Whether or not that comes to fruition is yet to be seen.

One thing I like about the EURJPY is the accuracy of its horizontal levels. There are several others I’m keeping a close eye on which I’ll detail at a later date should sellers get the job done.

For now, it’s all about 134.30/40 resistance and 131.40 support. As long as the former is intact as new resistance on a daily closing basis, the uptrend is vulnerable.

Alternatively, a daily close back above 134.40 would reinvigorate the bullish outlook and expose 136.60.

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EURJPY range on the daily time frame

Leave a Comment:

Zama says

Hi Justin,

Thank you so much for your analysis, I like how you put everything in detail, I’am now able to learn while I trade, your blog has been an eye opener for me and I have learned a lot from this.

Keep up the good work

    Justin Bennett says

    Great to hear! thanks for sharing.

Roy says

Excellent work Justin.
We can tell you have a passion for price action. You’re like a machine.
Please keep up the good work.

    Justin Bennett says

    Appreciate that, Roy. It never feels like work when you love what you do!

Panthep says

Thank you

    Justin Bennett says

    You’re welcome.

Lourens says

I had an inside bar yesterday so it means that it’s bullish again

salako gbola says

I am very greatful for ur analysis. Please continue ur good work.

Steve says

Thanks Justin. The market sentiments showed a strong Euro and yesterday’s daily close above 134.40 confirms the same, exposing 136.60 level

Haitham says

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