Weekly Technical Outlook: EUR/JPY ; Market Forecasts for February 29th – March 4th

• Resistance level   126.041, 127.255, 128.22
• Pivot Level 124.174
• Support Level 123.1791

Technical Analysis

EUR/JPY is looking for consolidation pattern from 123.1791 levels and is still in progress with strong support holding the levels. The price action produced strong bullish pin bar reversal candle indicating a shift in the momentum to an upside bias with pair closing above trend line. The pair looks for a corrective upward bias with price action confirming the bullish movement.

A medium term rally is still in progress with oscillator rising from 12.0 level. Looking at a sustained trading above 124.174 will confirm a strong long term momentum. This will remain the favoured case as long as support holds and would pave the way to reach levels at 126.041. Breaks here could expect levels of 127.255 and later at 128.22. Meanwhile, we’re uncertain on the time needed to complete the consolidation and the strength of the rebound.

But in any case, a break of 123.1791 levels will dampen our bullish view on the pair and should continue with the current momentum to upside making new higher highs. Outlook remains bullish for week.

Economic

• Consumer Price Index for the Euro, Markit Manufacturing PMI
• Unemployment Rate, Producer Price Index , Markit Services PMI, Retail Sales
• Industrial Production, Retail Trade, Jobs/applicants ratio
• Unemployment Rate, Overall Household Spending , Foreign bond investment

Area of Interest

• Strong support at 123.1791 area and closed above rebound of trend line.
• Bullish pin bars reversal strongly closing above the support area.
• Price action closed above rebound of trend line and oscillator above 12.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame support levels.

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