Got a yen special for y’all today!
These pairs are testing key resistance levels and might be due for a bounce or a break soon.
Here are the levels I’m watching:
GBP/JPY: 4-hour
GBP/JPY 4-hour Forex Chart
Guppy formed lower highs and found support at the 161.50 minor psychological mark, creating a descending triangle on its 4-hour time frame.
Another test of resistance is currently taking place, possibly sending the pair back down to the triangle support.
Technical indicators are giving mixed signals, though.
The 100 SMA is still above the 200 SMA to suggest that there’s a chance the top could break. If that happens, GBP/JPY might be in for a rally that’s the same height as the chart pattern. That’s roughly 700 pips yo!
Then again, the gap between the SMAs is narrowing to reflect slowing bearish momentum. This could mean that a downward moving average crossover is looming, too.
Stochastic is already giving off bearish vibes, as the oscillator is turning south from the overbought zone and showing divergence from the pair’s higher highs.
CHF/JPY: 1-hour
CHF/JPY 1-hour Forex Chart
Here’s another potential selloff looming!
CHF/JPY already fell through the neckline of its head and shoulders pattern on the hourly time frame, indicating that a reversal from the uptrend is in the works.
Technical indicators point to a continuation of the slide. The 100 SMA is below the 200 SMA to show that sellers have the upper hand while Stochastic is also heading lower.
Just be careful when shorting since the oscillator is inching closer to the oversold region. This means that franc bears might need to take a break pretty soon.
If that’s the case, CHF/JPY might climb past the area of interest and the 200 SMA dynamic resistance level to draw bulls back in the game!
