As carry trading transactions were witnessed yesterday, the EUR/JPY pair was able to rebound to close above the 50% correction level at 160.81. Trading for today might witness high levels of volatility as momentum and directional indicators are mixed showing the pair being slightly oversold on some intraday charts while adjusting from overbought areas on others. Yet the overall trend could be sideways with a slight tendency to the downside. A good demand point for the pair is at 160.81.

The GBP/JPY pair gathered enough bearish momentum to close below the 61.8% Fibonacci correction at 201.43 yet we need a confirmation to this move where if the pair today successfully closes below this level on the daily charts, the pair will be targeting the 198.09 level. Yet as we see the pair being oversold on all time frames, the pair has a good chance of rebounding from the 199.65 as it offers a good buying point for the pair

The pair was able to acquire enough bullish momentum to breach the previous target at 0.8030s where it is now targeting the 0.8094 level where a successful breakout of this level will open the way to as far as the 0.8130s. Yet today we could witness fluctuations in the markets as momentum indicators contradict with some adjusting from the overbought areas while others indicate the EUR/GBP pair highly overbought. Good demand for the pair is at 0.8039.