EURJPY#1--->Waiting Buy:

Good day, dear #investors and colleagues #traders!

Your attention a technical analysis of the currency pair #Eurjpy:

#Comment_to_past_week:

The #yen received a crushing blow to the entire spectrum of the market after market participants digested data on #GDP of #Japan:
-6.4% per annum and -1.6 per quarter.

Given the unprecedented scale of monetary incentives from the Bank of Japan (#BankofJapan), this is completely disappointing data and what market participants actually drew attention to, the data came before the destructive # coronavirus. Therefore, most likely the first quarter will also have negative data, and negative GDP data for 2 consecutive quarters indicate the beginning of a recession in the country.

Naturally, the currency of the land of the rising sun began to lose ground. This week, on Thursday there will be a meeting of the Bank of Japan and it will be for him that special attention will be paid by bidders. To some extent, the correction of positions that we observe on Monday-Tuesday potentially tells us that large investors want to refrain from serious actions before they understand what the Central Bank of Japan will do.

#Technical analysis:

Globally:

The currency pair jumped from zone 118.60, thus creating an upward channel from October 4. This formation will receive particular stability if the pair manages to gain a foothold above 122.27.

Locally:

The current pricing allows 2 events and they directly depend on the Central Bank of Japan:

1. The currency pair will begin to consolidate 119.60 - 119.00, and from there the impetus will be given to it by the Bank of Japan and the Government of Japan and the currency pair will continue to grow to 121.20 and possibly to 122.27.
(More likely scenario)

2. The currency pair will begin to decline and break through the mark of 119.00 if # the Central Bank refrains from premature actions and preemptive strikes on the economic crisis. In this case, #investors will be disappointed and the Japanese currency will rush to new highs. A special strengthening will be waiting for the yen in case of correction in the US stock market. Since in this case, the Japanese investor will begin to fix positions, close the volumes for American dollars, and return the yen home.
(Less likely scenario)

By tradition, we call the weekly support and resistance zones:

A) #Support: 119.20 and 117.35.
B) #Resistance: 122.12 and 123.22.

#Orders_and_Positions:
The currency pair worked out our recommendation perfectly and we took 221 points out of 294 possible. Last week, this week, we did not manage to publish a forecast on the adjustment of the exchange rate.

At present, our system demonstrates the need for a deeper correction to open new long positions.

We will wait for consolidation around the resistance and support levels to open positions.

(! Attention, these are preliminary price levels and we reserve the right to change them in our trading).

Regards to subscribers,
Ltd ”Wermelgion and Partners Investment”

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