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After a few rounds of taking in the punches, the euro pulled off a knockout punch after Draghi’s Jackson Hole speech. Here’s what I’m looking at on EUR/JPY, EUR/GBP, and GBP/JPY.

EUR/JPY

EUR/JPY 1-hour Forex Chart
EUR/JPY 1-hour Forex Chart

So much for that downtrend play! Thank goodness I refrained from setting any sell limit orders ahead of the Jackson Hole speeches because EUR/JPY just busted through the resistance.

This signals that the pair could be in for a climb from here as bulls are returning on the lack of cautiousness from the ECB head honcho. Stochastic is already indicating overbought conditions, so I might just wait for a quick retest of the broken channel resistance to go long.

  • WO: 130.44
  • Top WATR: 131.54
  • Bottom WATR: 129.35
  • PWH: 130.41
  • PWL: 127.83

GBP/JPY

Now here’s a neat retracement play ripe for the taking on Guppy! Price is currently testing the descending trend line connecting the latest highs of price action since the start of the month, and it looks like the 38.2% Fib might keep gains in check.

If so, the pair could make its way back down to the swing low near the 139.50 minor psychological mark or lower. A larger correction, on the other hand, could still last until the 61.8% Fib near the 142.00 handle. Note that GBP/JPY just recently broke below a long-term ascending triangle to indicate that a downtrend is in order.

Besides, Brexit talks are scheduled to take place in the next few days, so any signs of trouble for the U.K. economy could mean more pound weakness.

  • WO: 141.16
  • Top WATR: 142.55
  • Bottom WATR: 139.77
  • PWH: 141.04
  • PWL: 139.32

EUR/GBP

EUR/GBP 1-hour Forex Chart
EUR/GBP 1-hour Forex Chart

It looks like there ain’t no stopping this pair’s rally! After breaking past a long-term descending triangle resistance then trading inside an ascending channel formation, euro bulls staged another strong charge to break past the resistance.

After that, price also completed a neat pullback to the broken channel top to signal that bullish momentum is really going strong. However, stochastic is almost indicating overbought conditions once more to suggest that another quick correction to the nearby support at .9225 could be underway.

  • WO: .9241
  • Top WATR: .9307
  • Bottom WATR .9176
  • PWH: .9268
  • PWL: .9111

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