Let’s start this week with a look at the EUR/JPY and GBP/JPY pairs. These Japanese yen crosses are trading at the crossroad between key resistance and key support. While the EUR/JPY is looking to preserve a bearish outlook, the GBP/JPY has a more bullish bias. Let’s go to the charts.
The EUR/JPY rallied from 135.73 to 138.00, which was the August high. It held under 138.00, and a break below 137.00 can open up a bearish continuation scenario. A break above 138.00 however opens up a bullish outlook in the short-term but it would be limited to 139.00 where price would likely meet a falling channel resistance.The GBP/JPY is trying to hold above the 200-day SMA. It has done it so far, and a break above 173.00 will open up a bullish continuation outlook at least toward the 2014-high at 175.36. A break below 170.40 however might put GBP/JPY in consolidation mode with some bearish bias in the short-term.
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