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Consolidation is still the name of the game for EUR/JPY, as the pair is still trading inside that symmetrical triangle pattern I’ve been watching last week.

Price is testing the top of the triangle once more and stochastic is suggesting that another move lower might take place, although a breakout could be due sooner or later.

EUR/JPY 4-hour Forex Chart
EUR/JPY 4-hour Forex Chart

The resulting selloff or rally could last by around 800 pips or the same height as the chart pattern so make sure you’re ready in case it happens!

  • WO: 115.21
  • Top WATR: 116.63
  • Bottom WATR: 113.78
  • PWH: 116.21
  • PWL: 113.81


GBP/JPY 4-hour Forex Chart
GBP/JPY 4-hour Forex Chart

Last week’s BOE Inflation Report hearings turned out bearish for Guppy last week since Governor Carney was a bit more dovish than usual.

Still, the short-term rising trend line is holding up pretty well, probably because the BOJ has a dovish bias as well.

The pair has more room to cover before testing the neckline of the double bottom formation but this week’s U.K. events could spur additional volatility for this one.

  • WO: 136.04
  • Top WATR: 138.83
  • Bottom WATR: 133.24
  • PWH: 138.50
  • PWL: 135.03


EUR/GBP 4-hour Forex Chart
EUR/GBP 4-hour Forex Chart

Is EUR/GBP ready to resume its drop? Price broke below the rising channel support on its 4-hour time frame and found support around .8335 before pulling up.

The 38.2% Fib seems to be holding as resistance as it lines up with the PWH and broken channel support. Stochastic is heading south so sellers could take control of price action from here, but a larger pullback could still last until the 61.8% Fib and top WATR depending on this week’s catalysts.

  • WO: .8466
  • Top WATR: .8570
  • Bottom WATR: .8363
  • PWH: .8494
  • PWL: .8334

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