Woah! The EURJPY pair made a nice clean break of the neckline of the inverse head and shoulders formation on the daily chart. Since then, the pair has been climbing higher… but be careful! A falling trend line could form once the pair hits the 61.8% Fibonacci retracement level, which lines up with a broken support level. Also, the stochastics are in the overbought area, indicating that the buyers could be losing steam. If the pair slides back down, it could find support at the broken neckline around the psychological 125.00 handle. On the other hand, if the pair keeps heading higher, it could reach the resistance level just above the 134.00 mark.
Check this out. A potential double bottom pattern is brewing in the Cable’s (GBPUSD) 4-hour chart. The pair could continue its run especially if it manages to break above the formation’s neckline which is around 1.5380. The next level of resistance would be at 1.5567 if it does. However, it could fall back to the support at 1.5115 if it does not.
Next is the AUDJPY pair on its 4-hour chart. You see, the pair has been on a strong uptrend since the first week of February. Right now, conditions are already overbought as indicated by the stochastics. Given this, the pair could retrace for awhile before moving back up again. If it does, the pair could fall until it finds some support at the uptrend line or at the 85.00 psychological handle.