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Wassup, Friday forex warriors!

Let’s zoom in on the 1-hour charts today because GBP/USD and EUR/JPY’s short-term trends are poppin’ up continuation and breakout opportunities.

You in? Check it!

EUR/JPY: 1-hour

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

Trend traders better get their trading plans lined up because EUR/JPY is showing a trend continuation setup today.

As you can see, the pair has been on a downtrend since seeing a moving average crossover in late October (hey, it rhymes!) and now it’s pulling back to the 129.80 zone that lines up with the 38.2% Fib and 100 SMA retracement.

Can the euro continue to lose pips against the yen?

Shorting at current levels would yield a pretty good risk ratio if you’re betting on the euro dropping back to its 129.25 lows or even making new monthly lows.

If you believe that EUR/JPY is due for a reversal, though, then you’ll want to watch the pair in case it breaks above the 100 AND 200 SMAs and jump in as soon as it busts above the 130.75 previous area of interest.

GBP/USD: 1-hour

GBP/USD 1-hour Forex Chart
GBP/USD 1-hour Forex Chart

Remember that descending channel setup that we talked about earlier this week?

Well, GBP/USD bulls ain’t playing so now they’ve forced not only a breakout above the candlestick pattern but also possibly a bullish moving average crossover in the next trading sessions.

Are we looking at a reversal in the making?

Consistent trading above the 1.3500 psychological handle could push the pound up to the 1.3600 area of interest.

Not convinced that the pound can gain more pips against the dollar?

Bears can look out for a rejection at 1.3500 and then some bearish momentum before aiming for November’s lows with stops just above the big 1.3500 zone.