EURJPY: Allowing for deeper correction to 144

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I suspect there is further upside potential for Euro crosses if it sniffs even a hint of 'OK' data judging by previous reactions. Selling Euro is not exactly a new idea and we have seen relatively good gains from OK data already this week, to suggest short covering and buying from brave bulls at multi-year lows. Going into tonight’s session momentum favours continued Euro gains, so assuming data back the trend up then the upside should (in theory) provide the higher probability.

TECHNICAL ANALYSIS:

EURJPY: Allowing for deeper correction to 144

Despite what I have mentioned above on I suspect there is room for a dip lower on EURJPY. However this analysis could serve into next week whilst we find the end of wave 'B'.

At present I think we are witnessing a bearish wedge / sideways correction in the making but this does leave room for now highs. If we remain above yesterday’s lows then there is certainly an argument for a trip up to the 61.8% retracement level.

However a break below yesterday's low can be taken as a resumption of the bearish move from the 149 highs.

The target around 144 is assumed form wave A-C equality and confluence of support from bullish trendline, Monthly Pivots and 144.7 support.

EURUSD: Potential for another leg higher

With no US news tonight it will be Euro news which drives the crosses. I am still using exactly the same S/R levels from last Friday as they have continued to serve me well.

Intraday price action is clearly bullish and within a bullish channel, forming higher highs / lows. Until this pattern breaks I see no case for going short until just yet.

For that I would prefer to see a break of a bullish trendline and support.

GOLD: Let the sell-off begin (and continue...)

In the past hour we have just seen Gold finally break out of its range and beneath the Hanging Man Reversal candle formed 2 days ago.

I have been following these candles closely and now have to assume the top has been seen.

If you have not entered already we can seek to enter short on a retracement to the breakout line (lower dotted) with stop above $1208.

Alternatively we can refer to lower timeframes to trade in the anticipated bearish direction.

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