EURJPY Outlook

The EURJPY has a significant bearish momentum this week.  On daily chart below we can see that the major bearish trend which started on August 2008 has been corrected higher significantly since February 2009 then the bullish correction was stopped and price has been moving lower from June 2009 until now. This week, we have a potential signal that the bullish correction could be over. As you can see on the chart, we have a H&S formation which formed after the bullish correction and the neckline has been violated to the downside suggests a potential bearish scenario testing at least 125.70 or even 122.50 next week.  However, in order to maintain the bearish view, the pair must be able to stay consistently below 128.90 area. Failure to do so could diminish the bearish scenario. Important resistance is seen at 131.50. Clear break above that area should be seen as bearish scenario failure. Have a great weekend and see you guys Monday