Price is now moving above a rising trend line and might be ready for a pullback to the 118.50-119.00 area near the bottom WATR soon.
If support holds, the pair could make its way back up to the PWH near the 120.00 handle or all the way up to the top WATR closer to 121.00.
- WO: 119.69
- Top WATR: 120.86
- Bottom WATR: 118.53
- PWH: 120.17
- PWL: 117.32
Here’s another strong uptrend on a yen pair. GBPJPY is also moving above an ascending trend line and looks ready for a quick correction.
Applying the Fib tool on the latest swing high and low on the 1-hour chart shows that the 61.8% level is close to a former resistance, bottom WATR, and the trend line.
Bouncing off this area could take price back up to the swing high or onto the top WATR, depending on how U.K. event risks such as the BOE Financial Stability report turn out.
- WO: 140.69
- Top WATR: 142.86
- Bottom WATR: 138.50
- PWH: 141.75
- PWL: 136.29
Although both the euro and pound are trending higher against the yen, the latter seems to have the upper hand in the battle between European currencies. EUR/GBP is inside a descending channel on its 1-hour chart and might be due for a test of resistance soon.
Stochastic is turning higher to suggest that buyers are taking control and, if they’re strong enough, they could push for a break of resistance and a rally back to the area of interest at .8600, which is near top WATR and the PWH.
- WO: .8511
- Top WATR: .8614
- Bottom WATR: .8408
- PWH: .8639
- PWL: .8460
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.