EUR/JPY
EUR/JPY dropped sharply following a sudden strengthening of the Yen, a move that completely erased all of this week’s previous gains. While this aggressive downward shift could pave the way for more weakness next week, the pair may ultimately spend more time mostly ranging. A definitive daily close outside the green box consolidation area will be required to provide clear confirmation on the next directional trend.
Today’s critical levels to watch:
Support: 183.40
Resistance: 185.84, 190.00
EUR/GBP
EUR/GBP has extended its structural weakness and is currently trading inside the narrow window between 0.8500 – 0.8525. The pair might continue moving down slowly in a grinding fashion, though there is also a distinct technical chance of a counter-trend bounce developing from this immediate area. Traders will want to closely monitor how price reacts here before committing to new positions.
Today’s critical levels to watch:
Support: 0.8525, 0.8500
Resistance: 0.8580, 0.8600, 0.8700, 0.8750
GBP/JPY
GBP/JPY dropped sharply ahead of the weekend, mirroring the aggressive bearish behavior seen across other JPY pairs. Despite the slide, GBP/JPY finds itself in a much better structural position since it managed to finish the week with a net gain. Moving into next week, traders will look for confirmation on whether the pair will continue this downward move to target its ascending trend line or reverse to push back upward.
Today’s Critical level to watch:
Support: 214.965, 211.50, 210.00
Resistance: 218.00
GBP/CHF
GBP/CHF successfully completed its climb above the vital 1.0800 psychological resistance floor and is doing a solid job of maintaining its position above it. The ability of the buyers to hold this newly broken territory points to sustained underlying bullish interest. If there is no major change to this technical environment, the pair is expected to comfortably continue its broader upward movement.
Today’s critical levels to watch:
Support: 1.0660, 1.0600, 1.0500, 1.03599
Resistance: 1.0800