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EUR/JPY

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

What a breakout! The ECB presser did a number on the euro after Draghi hinted that they’re no longer looking to increase their monetary policy easing efforts. As a result, EUR/JPY surged past the area of interest at the descending channel resistance visible on the 4-hour time frame. This could be a sign that a longer-term climb is in the works, as the pair is also moving past the larger channel on its daily chart. However, stochastic is already indicating overbought conditions so a quick pullback could take place first.

  • WO: 122.45
  • Top WATR: 123.65
  • Bottom WATR: 121.25
  • PWH: 122.85
  • PWL: 120.01

GBP/JPY

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

Guppy broke down from its symmetrical triangle formation the other week but it looks like consolidation is still in play as the pair is now stuck inside a falling wedge pattern. Price is bouncing off the resistance and could be ready for another test of support near the PWL and 138.50 minor psychological level. At the same time, stochastic is heading down so GBP/JPY could follow suit. There are a bunch of top-tier reports due from the U.K. this week so a pickup in volatility could trigger a breakout in either direction.

  • WO: 139.43
  • Top WATR: 141.28
  • Bottom WATR: 137.59
  • PWH: 140.54
  • PWL: 138.45

EUR/GBP

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

Last but not least is this potential reversal formation on EUR/GBP’s 4-hour forex chart. Price failed in its last two attempts to break below the .8400 major psychological level, creating a double bottom pattern with the neckline around the .8800-.8850 levels, which are near the top WATR. If this area keeps gains in check, price could make another move back towards the bottoms or at least until the area of interest near the PWL or .8600 mark. Keep in mind that the odds are in the euro’s favor these days after the not-so-dovish ECB statement last week.

  • WO: .8773
  • Top WATR: .8864
  • Bottom WATR: .8683
  • PWH: .8781
  • PWL: .8625

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