EUR/JPY is in the middle of no man’s land, baby! Currently, price is chillin’ at the middle of a rising channel, biding its time. With Stochastic now in overbought conditions, we may see sellers jump in and bring this pair back down to test the 106.50 handle. On the flip side, if the bulls remain in party mode, they could push price up to test the top of the channel at around 108.50.
Is it make or break time for Guppy? GBP/JPY appears to be forming a rising wedge, and is currently testing resistance at the 133.00 mark. If price does manage to break to the upside, don’t be surprised if we see a test of the 135.00 handle soon. On the other hand, a break below the wedge could send this pair spinnin’ all the way down to former lows at 131.00!
If you’re a fan of breakout continuation patterns, this setup on USD/JPY may be for you! The pair is currently forming a bullish flag and is consolidating within a range of just less than 100 pips. Based on the height of the flag, if the bulls manage to break higher, we could see the pair rise another 300 pips!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.
Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.