Let’s start with the GBPJPY 4-hour chart. Notice that descending trend line connecting the highs of the price? Well, the pair is currently sitting right at that trend line, still deciding whether make a break for it or not. The pair could climb a tad higher, possibly until the 61.8% Fibonacci retracement level, before dropping down to its weekly low of 134.55. Besides, there appears to be a bearish divergence since the price drew lower highs but the stochastics showed higher highs. On the other hand, if the pair breaks above the trend line, it could climb until the previous week high of 139.36.
Check out the USDCHF 4-hour chart I showed you above. It also has a descending trend line connecting the highs of the price! However, this pair seems poised to make a convincing break of the trend line, just after it surged above the neckline of the inverted head and shoulders formation. Since the pair appears to be hesitating before climbing higher, it could dip and retest the broken trend line first. However, if it drops back under the trend line, it could find support at the broken neckline near 1.0640.
Here’s another look on the EURJPY chart that I drew yesterday. As you can see, the pair has corrected back near its 50% Fibonacci retracement level after touching a low of 121.06. This mark also happens to fall in line with the psychological 123.00 handle. With stochastics in the overbought area, the pair would likely head lower soon until it finds some support probably at its two-week low. But if the pair manages to move past 123.00, the former neckline and the 61.8% Fib are still there to keep it from moving higher.