We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bearish
More View more
Real Time News
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.44% Wall Street: 0.43% US 500: 0.41% France 40: 0.35% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/r4xNYs4vlg
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/rGRzQtgtOb
  • Missed my webinar? See the recording and a bullet point summary of the main topics discussed: - #WEF2020 - EU-US #Tradewar tensions - IMF World Economic Outlook unpacked - Key data to watch for the week ahead - Biggest risks facing the global economy https://www.dailyfx.com/forex/market_alert/2020/01/22/Japanese-Yen--Gold-Prices-May-Retreat-on-Davos-Forum.html
  • The Canadian Dollar and Australian Dollar outlook may favor the downside based on positioning signals. This is as USD/CAD faces the BoC while AUD/USD awaits Australia’s jobs report $USDCAD $AUDUSD #BoC - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/22/Canadian-Dollar-Australian-Dollar-Outlook-Positioning-Hints-Lower.html?CHID=9 https://t.co/lmdXFoEPIp
  • The Japanese Yen has faded into 2020 as market risk appetite has held up and hit demand for haven assets. $USDJPY now challenges a key medium-term downtrend, but hasn’t topped it yet.Get your market update from @DavidCottleFX here:https://t.co/4X6vgCgkB7 https://t.co/cEUZlD8FoF
  • The current astonishing price difference between #crudeoil and #naturalgas may tell us much less about global growth prospects than you might think. The US gas industry is well supplied with shale producers adding to the glut. https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/22/Crude-Oil-Natural-Gas-Prices-Part-Ways-What-Does-This-Mean-.html?utm_source=Twitter&utm_medium=Cottle&utm_campaign=twr
  • My trading video for today: 'Dow, Emerging Markets and Yuan Hit by Coronavirus-Tinged Risk Aversion' https://www.dailyfx.com/forex/video/daily_news_report/2020/01/22/Dow-Emerging-Markets-and-Yuan-Hit-by-Coronavirus-Tinged-Risk-Aversion.html?ref-author=Kicklighter?CHID=9&QPID=917719 https://t.co/vihwKOdVr5
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Silver: -0.29% Gold: -0.41% Oil - US Crude: -0.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/8kdO6Qqkow
  • The $GBP may be on the cusp resuming a 12-year downtrend against the US Dollar as signs of topping emerge at pivotal chart resistance. Get oyur market update from @IlyaSpivak here:https://t.co/9rM3OjWmBA https://t.co/C1voqDy4hc
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: -0.01% 🇦🇺AUD: -0.05% 🇬🇧GBP: -0.06% 🇨🇦CAD: -0.11% 🇨🇭CHF: -0.12% 🇯🇵JPY: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/dagocTZSUu
EUR/JPY and GBP/AUD Positioned for Lower Prices

EUR/JPY and GBP/AUD Positioned for Lower Prices

2018-01-10 16:53:00
Paul Robinson, Currency Strategist
Share:

EUR/JPY range breakout fails, implicates move to bottom of range or worse

At the end of December, EUR/JPY broke out of the range it had been confined to for three long months. We initially ran with the breakout. But in recent days, the failure to hold above the range suggests more selling is on the way, and if so, likely to the bottom of the range and possibly worse. From a trading standpoint, initiating a swing-trade at the moment doesn’t offer tremendous appeal in terms of risk/reward unless we see a push back up towards the upper-end of the range at 13450 and see a rejection.

For those trading on shorter-term time-frames (using 1-hr/4-hr charts), though, the path of least resistance is lower as long as the 13450 threshold isn’t reclaimed. Short-term set-ups on intra-day time-frames (i.e. bear flags, failed rallies w/bearish pin-bars, etc.) with good risk/reward (1:2 or better) could hold good juice until the low-end of the range around 13150. There are some trend-lines extending higher around the current level, but the failed breakout takes precedence in terms of importance.

Start expanding your knowledge today with Market Forecasts and Educational Guides

EUR/JPY: Daily

EUR/JPY daily price chart

Tactical approach:

  • Short-term shorts below 13450, targeting ~13150
  • Swing-trade on retest of top of range, stop above retest-day high upon a reversal
  • Daily close below bottom of range opens up path for much bigger move lower (will revisit if breakdown develops)

GBP/AUD descending wedge developing in direction of trend

GBP/AUD is in the process of carving out a descending wedge in the direction of the trend off the December high. The pattern triggers with a 4-hr closing bar below the bottom of the pattern; targeting a pair of swing-lows created back in November at 17040, then down just under 16900. Taking profits ahead of these levels is prudent in the event buyers step in ahead of support. Stops should at the least be placed sufficiently back inside the wedge. Some traders may choose to take a long on a top-side breakout, but the direction of trend and bearish implications of a descending wedge elevate risk of a rally failing.

Struggling with confidence right now? You’re not alone. Check out the Building Confidence in Trading guide for 4 ideas on how to get back on track.

GBP/AUD: 4-hr

GBP/AUD 4-hr price chart

Tactical approach:

  • Trigger is a closing 4-hr bar below pattern
  • Stop placed inside pattern, ~17270 (red dotted line)
  • Profit objectives set 30 points above support at 17070 and 16925 (blue dotted lines)

---Written by Paul Robinson, Market Analyst

To receive Paul’s analysis directly via email, please SIGN UP HERE

You can follow Paul on Twitter at @PaulRobinsonFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.