EURJPY, WEEKLY CHART

TECHNICAL ANALYSIS

The price is back into the A zone as we had  in our 2015 article here. This is large resistance zone (highlighted zone) that could serve as a retest for continuation of down trend or as change from downtrend to uptrend ie shift in sentiment from sellers to buyers.

Price has been moving in downward channel shown in the chart below with several false breakouts. But these breakouts would move over 400 pips before price gets back to channel. The break outs are marked with golden arrows. So it was quite tricky channel to pick bounces off the channel support and resistance

Currently the price as at channel  resistance.Although the weekly candle break is not very convincing, the monthly candle break shows higher probability to test a higher resistance around 128.000 marked by the green horizontal line. A strong weekly bullish candle is required for confirmation or else price could fall back into the channel or congest longer.