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EUR/JPY

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

Reversal alert! EUR/JPY seems to be forming a double top pattern on the 4-hour time frame as price failed in its recent attempts to break past the barrier around 123.00-124.00. The pair is now edging down to the neckline around 118.00, which is just above the bottom WATR this week. A break below this level could send price down by at least 500 pips or the same height as the chart formation. However, stochastic is already dipping into the oversold region so a bounce could be due.

  • WO: 118.83
  • Top WATR: 119.90
  • Bottom WATR: 117.77
  • PWH: 120.45
  • PWL: 118.73

GBP/JPY

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

Looks like last week’s triangle breakdown was a fake out! Guppy jumped back above the resistance and now seems to be testing the next roadblock at the 140.00 major psychological level. Stochastic is indicating overbought conditions, which suggests that pound bulls need to take a break, so a drop back to the channel support near the PWL could happen. On the other hand, a break past the channel resistance and PWH could take the pair up to the next barrier at the top WATR and beyond.

  • WO: 139.74
  • Top WATR: 141.28
  • Bottom WATR: 138.20
  • PWH: 140.10
  • PWL: 137.53

EUR/GBP

EUR/GBP Daily Forex Chart
EUR/GBP Daily Forex Chart

Don’t look now but EUR/GBP is already approaching a major support area at the bottom of the symmetrical triangle visible on the daily time frame. If this continues to keep losses in check, the pair could bounce back to the top at the .8700 handle near the PWH. Stochastic is still moving south, showing that sellers are on top of their game, but it could soon turn from the oversold region to indicate that buyers are regaining energy. However, a break below the .8500 handle and bottom WATR could signal that a longer-term selloff is underway.

  • WO: .8503
  • Top WATR: .8583
  • Bottom WATR: .8423
  • PWH: .8736
  • PWL: .8515

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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.