EURJPY has dropped below 181 due to sudden yen purchases that are board-based. As long as the support at 180 is maintained, the intraday session remains bullish. From the intraday low of 180.638, the pair is now trading at around 180.668.
The pair has gone below the short-term trend line support, which is a confirmation of the intraday weakness; thus, a fall to 179.78/179.50 can be anticipated. However, the trend that is still prevailing is bullish as the support at 178.80 is maintained.
Technical Analysis:
The EUR/JPY pair is trading below 55 EMA, 200, and above 365-H EMA on the 1-hour chart.
- Near-Term Resistance: Around 181, a breakout here could lead to targets at 181.55/182/182.62/183/185.
- Immediate Support: At 180.60, if breached, the pair could fall to 180/179.70/ 179.20/178.90/178.40/178/177.25/176/175.20.
Indicator Analysis (60-min chart):
- CCI (50): Bearish
- Average Directional Movement Index: Bearish
Overall, the indicators suggest a bearish trend
Trading Recommendation:
It is good to sell on rallies around 180.78-80 with a stop loss at 181.45 for a TP of 179.50.
