EUR/JPY had a volatile run in the U.S. elections aftermath as risk appetite flipped this way and that.
Eventually, price broke above the top of its symmetrical triangle visible on the 4-hour time frame, indicating that bulls are gaining energy.
The chart formation is approximately 700 pips tall so the resulting rally could last by the same height.
- WO: 115.78
- Top WATR: 116.96
- Bottom WATR: 114.61
- PWH: 116.48
- PWL: 113.71
GBPJPY had a really sharp ascent last week, driven by risk-taking and a less downbeat outlook by the Brits. This was enough to take the pair up to the descending channel resistance, which might keep gains in check for the time being.
Stochastic is indicating overbought conditions also so bears could get back in the game, especially if this week’s set of U.K. reports turn out weaker than expected.
- WO: 134.46
- Top WATR: 136.68
- Bottom WATR: 132.24
- PWH: 134.92
- PWL: 126.75
After completing that double top formation I showed y’all last week, EUR/GBP dropped like a rock to the .8600 area, which lines up with an ascending trend line connecting the lows on the 4-hour chart and a former resistance level.
Stochastic is starting to turn from the oversold zone and a move higher could allow the pair to follow suit, possibly making its way back to the previous week’s highs later on.
- WO: .8607
- Top WATR: .8714
- Bottom WATR: .8501
- PWH: .9025
- PWL: .8568
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