EUR/JPY
EUR/JPY pushed lower at the end of the week but managed to stage a massive recovery. The pair closed the day above the opening level and printed a large bullish pin bar pattern. The pair will attempt to extend the bullish movement this week to target the 165.814 and 167.143 Fibonacci Extension levels. Traders will avoid shorting the pair for now and continue to hold long positions with tight stops while monitoring BOJ reactions to the current weakness of Yen.
Today’s critical levels to watch:
Support: 163.00, 162.00, 160.00
Resistance: 165.81, 167.14
EUR/GBP
EUR/GBP finally broke out from the green box area with strong bullish momentum. The pair closed above the 0.8580 – 0.8600 area and practically confirmed a new bullish trend. Traders could use the area to enter long positions when a bearish correction happens toward it. There is no suggestion to turn bearish unless the pair falls with similar momentum as the previous week’s bullish movement.
Today’s critical levels to watch:
Support: 0.8400, 0.8325
Resistance: 0.8580, 0.8600, 0.8700, 0.8750
GBP/JPY
GBP/JPY made a bearish correction but no new lower low was printed on the chart. The pair looks consolidating and waiting for further bullish pressure. At the current time, traders will monitor the pair movement inside the triangle area. When a breakout and close outside of the area happens, traders will get confirmation on the next direction. However, traders will prepare for sudden movement as BOJ might intervene when Yen weakens further.
Today’s Critical level to watch:
Support: 188.50, 186.00, 184.00, 182.45, 178.50
Resistance: 190.00
GBP/CHF
GBP/CHF fell sharply after the breakout from the bullish trendline. The pair reached the 1.1200 – 1.1225 area immediately and showed bullish reactions. Despite the bullish situation, traders will stay cautious for possible bearish continuation as the prevailing bearish pressure has strong momentum. If the pair could stabilize above the area and form a major bullish pattern then traders will expect bullish continuation.
Today’s critical levels to watch:
Support: 1.1200, 1.1100
Resistance: 1.1530, 1.1600, 1.1750