EUR/JPY
EUR/JPY has fallen below the Fibonacci Retracement area which means the trend is bearish for the long term. Traders could wait for a bullish correction toward the Retracement area for a chance to enter short positions. The direction is bearish which means traders better avoid long positions unless for short-term speculation. It is better to look for a chance to short the pair and ride it lower as BOJ decided to raise the interest rate.
Today’s critical levels to watch:
Support: 171.51, 170.00
Resistance: 176.66
EUR/GBP
EUR/GBP launched upward today and surpassed 0.8500. The pair is currently trading near 0.8530 and it is only a matter of time before the resistance level breaks to the upside. Traders could use 0.8500 as the place to enter long positions when bullish reactions occur. We could say the trend has turned bullish as the pair has formed a new higher swing high, however, a massive bearish reversal could cancel the current bullish situation. Traders will assume the bullish movement will continue but also be prepared when there is a massive bearish reversal.
Today’s critical levels to watch:
Support: 0.8400, 0.8325
Resistance: 0.8500, 0.8530, 0.8580, 0.8600, 0.8700, 0.8750
GBP/JPY
GBP/JPY fell like a knife or rock and reached the 188.50 support level. The pair has retraced more than 50% of its bullish movement. If a bullish bounce happens then traders will treat it as a chance to enter short positions at a higher level. No reason to turn bullish on the pair as the current bearish movement is supported by a fundamental situation triggered by BOJ.
Today’s Critical level to watch:
Support: 193.50, 190.00
Resistance: 198.00, 200.00, 200.50, 208.86
GBP/CHF
GBP/CHF extended the bearish movement and reached the 1.1000 support level. The pair might start a bullish bounce from the current level toward the 1.1200 – 1.1225 area. If the pair manage to reach the area and produce bearish reactions then traders could enter short positions targeting a new lower swing low.
Today’s critical levels to watch:
Support: 1.1225, 1.1200
Resistance: 1.1360, 1.1530, 1.1600, 1.1750