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EUR/JPY

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

EUR/JPY is hitting a pretty strong ceiling at the top of the descending channel visible on its 4-hour time frame. This also happens to be right smack on an area of interest around the 121.00-121.50 area, as well as the previous week high (PWH). If this level keeps gains in check, price could turn back down to the bottom of the channel near the previous week low (PWL) and 118.00 handle. Stochastic is already indicating overbought conditions so sellers could gain the upper hand soon, but this might depend on how this week’s ECB statement turns out!

  • WO: 121.08
  • Top WATR: 122.14
  • Bottom WATR: 120.03
  • PWH: 121.14
  • PWL: 118.25

GBP/JPY

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

After the other week’s breakdown on GBP/JPY’s symmetrical triangle formation, price pulled back to the broken support last week. This area seems to have held as a ceiling, possibly sending the pair on a downtrend from here, especially if it breaks below the PWL. Note that the triangle pattern is around 800 pips tall so the resulting selloff could last by the same amount. Stochastic is already on its way down, which means that bearish momentum is in play, but it could all hinge on Brexit-related updates.

  • WO: 139.85
  • Top WATR: 141.71
  • Bottom WATR: 137.99
  • PWH: 140.74
  • PWL: 138.84

EUR/GBP

EUR/GBP 1-hour Forex Chart
EUR/GBP 1-hour Forex Chart

EUR/GBP continues to climb and is moving inside a tight ascending channel on its 1-hour chart. Price is currently testing the resistance and might be due for a pullback to support at .8575-.8600 since stochastic is starting to turn down from the overbought zone. If buyers continue to put up a fight, the pair could break past the channel resistance, which lines up with the PWH and week open (WO) price, then head up to the next ceiling at the top WATR. On the other hand, a break below the channel support could spur a test of the bottom WATR.

  • WO: .8631
  • Top WATR: .8715
  • Bottom WATR: .8547
  • PWH: .8641
  • PWL: .8469

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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.