A retracement, perhaps? As seen on USDJPY’s daily chart, the pair pulled up from its dive after hitting a low of 80.24. Right now, it looks like the 38.2% Fibonacci level is serving as resistance for the pair. With Stochastic in the overbought area, the pair could resume its drop. But if buyers still have enough energy to push the pair higher, it could still climb until the 61.8% retracement level, which coincides with a former support area.
Here’s another Fib action for ya! USD/CHF has been climbing the 4-hour chart since it hit bottom at .9550 a few days ago, but it looks like it could hit resistance at .9760, the 50% Fib and a previous support and resistance area. Stochastic has also been lollygagging near the overbought region for a while now so the bears better be ready for a potential drop! The pair could go down all the way to the support in the .9600 area, but .9900 is also a good level if the bulls manage to push the pair past the resistance.
Who’s up for a lil’ head and shoulder play? GBP/USD peaked near the 1.6300 level a few days ago, and it looks like it formed its shoulders in the 1.6100 area. A potential neckline support can be seen at 1.5975, and a break in support can push the pair below the 1.5800 level. Meanwhile, keep an eye out for any surprises as the bulls can still push the pair all the way to the previous resistance at 1.6300.