EUR/JPY Price Analysis: Bulls seek extension, but bears are lurking

EUR/JPY bulls seeking a continuation following test of W-formation's neckline.
EUR/JPY bearish wicks cause some doubt for the bullish case.

Ross J Burland FXStreet

EUR/JPY is in a consolidative mood in Asia today and has travelled between a 20 pips range consisting of a low of 131.87 and a high of 132.10.

That being said, the daily chart is compelling on the daily time frame and the following illustrates the bullish bias.

However, there is a caveat:

Daily chart

EUR/JPY is trading on the bid for the most part following a rise from the W-formation's neckline. The bulls are in control at this juncture and an onwards move to the upside could be on the cards.

With that being said, the bearish wicks hardly instil confidence. moreover, the W-formation on the EUR/USD chart is bearish:

EUR/USD Price Analysis: Bears are lurking with eyes on 61.8% Fibo target

It should also be noted, that risk-off markets will not favour the euro over the yen or the US dollar:

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Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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