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I’m zooming in to the short-term time frames to spot potential day trades on EUR/JPY, EUR/GBP, and GBP/JPY this week. Check ’em out!

EUR/JPY

EUR/JPY 1-hour Forex Chart
EUR/JPY 1-hour Forex Chart

Euro bulls kept on charging in the past few days thanks to a more upbeat ECB policy bias revealed in the central bank’s meeting minutes last week.

This report allowed EUR/JPY to break past the 129.00 major psychological resistance, which might now hold as support moving forward. Stochastic is already sliding down from the overbought zone to signal a potential pullback from the rally.

Applying the handy-dandy Fib tool on the latest swing low and high on the 1-hour chart shows that the 61.8% level lines up with the area of interest, bottom WATR, and rising trend line connecting the lows since late June.

  • WO: 129.85
  • Top WATR: 130.97
  • Bottom WATR: 128.74
  • PWH: 130.13
  • PWL: 127.98

GBP/JPY

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

Guppy retreated from its climb late last week after U.K. reports collectively hinted at an ongoing economic slowdown. In particular, the PMI readings signaled a subdued pace of growth in the manufacturing, services, and construction sectors.

However, this pair is still finding support at the short-term rising channel bottom, which coincides with this week’s open price and a former resistance level at 146.50. Stochastic is pulling up to indicate that pound bulls are getting back on their feet.

In that case, GBP/JPY could have a shot at moving back up to the channel resistance near the 148.00 major psychological resistance and top WATR. But if bears step up their game, a breakdown could happen and take price to the PWL or bottom WATR.

  • WO: 146.62
  • Top WATR: 148.10
  • Bottom WATR: 145.14
  • PWH: 147.61
  • PWL: 145.82

EUR/GBP

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

EUR/GBP continues to cruise inside its ascending channel pattern after breaking past the mid-channel area of interest.

This means that price could have enough momentum to climb all the way up to the resistance at the .8900 major psychological level and top WATR. However, stochastic is pointing down to suggest that a quick pullback to the middle of the channel could be due.

If sellers are strong enough, they could even push for a larger correction to the channel support near the bottom WATR. On the other hand, another surge in the euro or a sharp pound selloff could spur a break past the channel resistance and a move towards the .9000 handle.

  • WO: .8842
  • Top WATR: .8907
  • Bottom WATR: .8778
  • PWH: .8861
  • PWL: .8757

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.