Yen Crosses Extend their Declines
The GBP/JPY cross pair from the weekly perspective has met all our bearish targets and we look for move weakness to come. On the chart is a downtrend continuation pattern and leg 2 is not activated yet . Once this area of 132.75 is broken, look out below with our projection at 90.97 for our first target. This will not happen until the 132. 75 area is broken and candle closed. MACD looks to confirm this trend line break about to happen as it has a lot of momentum to head to the south side. We will sell the rallies on the 30 min chart for this cross pair.
The pair GBP/CAD on last week’s chart was 1.5387, and currently now in the 1.4900s with more bearish side to come. The past 3 weeks we have been in major consolidation and have finally broke to the downside on this downtrend continuation pattern. The navy blue line is our support level that has been broken. The breakout of leg 2 of the downtrend continuation pattern is confirmed by MACD and our first target is 1.4200. Since we are out of the consolidation sideways movement we can now target over 100 pip profits selling the rallies on 30 minute chart until 1.4200 is in profit.
EUR/JPY Pair has fallen dramatically as the EUR is the “base” pair in the currency. Looking at the chart we have a downtrend continuation pattern and leg 2 is already in play. On the Chart we have price action at 114.18 and look for another retest to the low of 110.00 creating a double bottom, and then a rise of 50% to gain momentum for another leg down. We will look to sell the rallies on this pair using the 30 minute chart to target the overall low of 110.00 price action.
Erica Villalon, Traders International
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