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Who’s ready to catch some more pips?

We’re all about the European currencies today with a neat wedge on EUR/JPY and a possible bounce for GBP/AUD.

Which pair would you rather trade?

EUR/JPY: 1-hour

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

EUR/JPY is poppin’ up higher lows that look a tiny bit steeper than its higher highs. Are we looking at a rising wedge at the end of a strong upswing?

School of Pipsology readers know that wedges can see breakouts that are as strong as the height of the base of the triangle. We’re talking 50 pips in this case!

What makes the pattern more interesting today is that it popped up right as EUR/JPY is flirting with its late December highs.

Will EUR/JPY break lower as the pattern suggests? The 126.75 zone is a good place to eye if you’re thinking of selling the euro against the yen.

If EUR/JPY breaks above the wedge, however, then you can watch out for a possible retest of the 127.50 or 127.80 previous infection points.

GBP/AUD: 4-hour

GBP/AUD: 4-hour Forex Chart
GBP/AUD: 4-hour Forex Chart

I spy with my eye a bounce in the making.

That’s right, GBP/AUD just broke above a tight consolidation near December’s lows!

Countertrend traders can take advantage of the currently bullish candlestick and aim for the 1.7600 previous support level or the 1.7730 area closer to the 100 SMA.

Meanwhile, pound bears can wait for either a 100 SMA retest or a clear break below this week’s consolidation (which means new 2021 lows!) before shorting the pound against the Aussie.

Watch this one closely, yo!