EURJPY - Bear squeeze likely; sellers to re-emerge at 97.60

Against a background of negative EURJPY signals for this week, yesterday’s forecast was also bearish, which was confirmed with losses of almost ¾ Big Fig. A sequence of lower daily highs continues to highlight investors’ willingness to sell into any strength, but daily signals for sentiment are oversold and bounces are likely.

With this in mind, and as today’s signals continue to point lower, the call is to also sell a rally at 97.60, using a stop at 98.14. The immediate profit objective is 97.05/10, the 5th June low, with a move through this point targeting 96.77, the 5 week base and then towards 95.99, June’s low trade.

The risk to this call, however, would be with buying through a stop at 98.14, this week’s high, a cautiously positive signal ending the sequence of lower daily highs and improving sentiment to 99.12, Friday’s top.