USDJPY : Daily
Check out the action on the USD/JPY chart! A downtrend line can be formed connecting the highs of the pair on the daily chart. It is currently making its way towards the 38.2% Fibonacci level, from which it could rebound. Stochastics has just made a crossover upon reaching the overbought area, suggesting that sellers are about to take the upper hand. The pair could head even lower, possibly until the previous support level at 94.50. This is slightly below the 50% Fibonacci level at 94.77. After the rebound, the pair could hit the downtrend line again and tumble down.
GBPUSD : 1-hour
Above is a follow-up of the GBP/USD chart that I did yesterday. As you can see, the pair managed to close above its downtrend line. The pair attempted to break 1.6500 a number of times but was unable to close past the psychologically significant number. Price action is now trading within a tight range between 1.6500 and the previous day’s low at 1.6431. With no clear sign of a reversal yet, there still may be bias for pound selling. If the pair breaks the previous day’s low then it may find some immediate support at 1.6400. On the other hand, if for some reason the buyers managed to push the price above 1.6500, then it’s very possible for the pair to move all the way up to 1.6600.
USDCAD : 4-hour
Here’s a chart update on the USDCAD I did a few days back. In that post, I mentioned that, if price does break resistance at 1.0900, potential resistance could be found around 1.1000 as 1.1000 nicely coincides with the 38.2% Fibonacci. Question now is whether this upward move is a new trend or simply a retracement on the larger time frame. If traders do see this as a chance to sell the pair once again and 38.2% holds, the pair’s next stop would be support at 1.0900 and 1.0750 respectively. On the other, if the pair continues its move upwards, its next targets would be the 50% (1.1150) and 61.8% (1.1275) Fibonacci levels.