EUR/JPY target this morning was 138.91, price achieved so far 138.68 from 138.23. The target is now raised higher to 139.35. EUR/JPY shorts are valid only on a break below 138.55. I will offer the points on a break of 138.55 in case catastrophe strikes the markets but its not likely to happen. China is the problem but we have 5 hours yet to the China open.
Bottom. 137.86. Range break above 139.66, Below 137.45.
Next above for EUR/JPY 138.69, 138.84, 138.91 ( Old target), 138.99, 139.17, 139.26, 139.35. Overbought points begin between 139.26 – 139.35. Severe overbought begins between 140.04, 140.38 and 140.73. Note we have a range above at 139.66. We want a 139.35 target. Watch for a failure before 139.35. The short reversal comes at 139.35 to target 138.20. The China open may change this forecast so don’t be bashful to take profits, I will report again at the open.
A break of 138.55 then short to target 138.20, then the range bottom at 137.86. Points on the way down, 138.42, 138.27, 138.20, 138.03, 137.86.
Brian Twomey, Inside the Currency Market, btwomey.com