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I’ve spotted a couple of potential range plays and one that might pass as a breakout. Here’s what I’m seeing on EUR/JPY, GBP/JPY, and EUR/GBP!

EUR/JPY

EUR/JPY 1-hour Forex Chart
EUR/JPY 4-hour Forex Chart

Is my one good eye deceiving me or is that a legit breakout I’m seeing? EUR/JPY appears to have busted through the top of the descending channel on its 4-hour chart and might be in for a climb.

However, stochastic is heading south from the overbought area to signal a return in bearish pressure. In that case, sellers could still insist on taking price back down to support at the 131.00 major psychological mark.

  • WO: 133.79
  • Top WATR: 134.81
  • Bottom WATR: 132.76
  • PWH: 134.39
  • PWL: 131.72

GBP/JPY

GBP/JPY 1-hour Forex Chart
GBP/JPY 4-hour Forex Chart

‘Twas another volatile one for Guppy as price bounced off support around 147.50 and skyrocketed to the resistance at the 152.00 mark in less than a day!

So far, the top of the range is holding as a ceiling and stochastic turning down from the overbought zone suggests a return in bearish momentum. This might be enough to take the pair for a pullback from its rally before more pound bulls join in.

An upside break from the range resistance could mean a climb of around 450 pips or the same height as the rectangle formation.

  • WO: 151.62
  • Top WATR: 153.03
  • Bottom WATR: 150.21
  • PWH: 152.48
  • PWL: 146.98

EUR/GBP

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

Yipes! I probably should’ve exited my long position when I had the chance last week. This pair is now back to the last line of defense on its rally as it tests the bottom of the range at .8775.

Stochastic is already on its way up, which means that buyers are trying to regain the upper hand. But if the oscillator reaches overbought levels without a bounce from the pair, sellers could attempt to push for a break below support.

  • WO: .8825
  • Top WATR: .8897
  • Bottom WATR .8754
  • PWH: .8981
  • PWL: .8777

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