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EUR/JPY

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

The pair broke below the range support around the 121.00 major psychological level and dipped to a low of 119.33 before making a correction. Price has now pulled back to the broken floor, which is somewhere around the 38.2% to 50% Fibonacci retracement levels. If this area of interest holds as resistance, EUR/JPY could slide back to the PWL or the bottom WATR soon since stochastic is turning down from the overbought zone. A higher correction could last until the 61.8% Fib and the top WATR.

  • WO: 120.72
  • Top WATR: 121.84
  • Bottom WATR: 119.61
  • PWH: 121.50
  • PWL: 119.33

GBP/JPY

GBP/JPY 1-hour Forex Chart
GBP/JPY 1-hour Forex Chart

Guppy has been forming lower highs and higher lows these days, creating a symmetrical triangle formation visible on the 1-hour time frame. Price seems to be aiming for the top of the triangle but the PWH is holding as near-term resistance. If pound bears get back in the game, GBP/JPY could fall back to the triangle support near the bottom WATR. The economic calendar shows that we’ve got a bunch of catalysts lined up from the U.K. this week so breakouts could also be possible!

  • WO: 141.71
  • Top WATR: 141.69
  • Bottom WATR: 139.73
  • PWH: 142.38
  • PWL: 138.55

EUR/GBP

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

Looks like sterling is putting up a strong fight against the euro, as a head and shoulders pattern is forming on the 1-hour time frame. Price is now testing the neckline near the PWL and a breakdown could take it around 300 pips lower, which is roughly the same height as the chart formation. Stochastic is on middle ground and is turning lower, hinting that sellers ain’t done pushing for a drop and this week’s top-tier reports from the U.K. might do the trick.

  • WO: .8519
  • Top WATR: .8607
  • Bottom WATR: .8553
  • PWH: .8642
  • PWL: .8490

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