Good morning Traders!
The aftermath of Friday’s BOJ meeting continues, with the Japanese Yen extending its decline against many of its trading partners.
EURJPY
EURJPY is in a confirmed uptrend on the Daily, Weekly and Monthly timeframes. The strong buying momentum that followed the BOJ policy meeting on Friday saw the market trading above the December 2014 highs of around 150 and closing above this high, potentially signalling buyers in control.
After the strong push higher, the market is currently overextended from its Moving Averages on all the higher timeframes. Drawing the Fibonacci retracement of the latest Daily move has the area between the 50% to the 61.8% retracement clustering with the previous Daily swing High and the major High on the weekly chart.
I am looking for a pullback to this area to release some of this strong buying pressure, and then I’ll be heading to the lower timeframes for a potential setup long.
Happy Trading!
