GBP/JPY posses a double tops on intra-day trades. Currently, it is trading with penetration into to 50-day moving average on the 15-min chart.

It won’t be surprising to see further deteriotion pounds sterling if the 203.70 support is broken on the present trend.

For now we are staying out of the market because we can see a slight consolidation around the Fib 23.6% level from yesterday’s sessional low.

On the contrary, if you are going in trade cautiously and have a great day of trading.

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GBP/USD is marching slowly but surely towards support levels of 1.9100/9300 we drew a few months back in January. Many had argued on the possibilities when the pair was still trading at 1.9900. Were you one of the “doubting Thomases”?

We have since written a few articles that support our position on this analysis considering recent data and Bank of England’s present economic stance. Yesterday also saw a significant shift from the MPC people - a rise in interest rate with food prices soaring to record highs. Using this as a yardstick, the Government’s recent measures may take months to alley fears of the economic woes and looming recession in the UK.

For the interim period, cable GBP/USD has to rely on the vulnerability and weakness of other pairs and crossing currencies for any upward tracking climbs. The spike in oil prices has also exacerbated things from many angles.

For now, we still maintain our position. That is anticipating a dripping channel to our support line drawn in the sand - a support of 1.9300 region. 

However, we are most likely to see the pair vacillate along the Fibonacci level of 23.6%. This could take weeks and months to playout as eventually. Have a great day.

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EUR/JPY is currently dating at crossroads wondering which way to go on the mid- and long-term charts. Will it reach for the stars or take to the pits?

In the monthly chart above, the EUR/JPY has developed a wedge over the trendline. Since it’s seasons high of 168.93 in July of 2007, the cross has oscillated between 149.93 - 168.93 trading higher-lows and lower-highs. An indication of a strong consolidation.

From the daily chart above the cross has set itself up for a 4th-wave buying trend. If this happen as the chart indicates we expect to see a short-term rise to the 166.94/167.20 trendline in the next few weeks.

If we experience a buying failure at 162.00 support we may see the market taking a turn for the pits. A possible near-term of 151.80/152.00.

Whatever direction you go, trade cautiously. It’s better to take a little piece than attempt the whole lump that wipes your capital out.

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Cable, GBP/USD lay siege on the corridor of 1.9676 support. The pair currently trades 1.97.17 from a trend that began in Asian Hours at 1.9890. How far will it go today? The end shall tell.

In the near term the pair is still not out of the woods yet. The falling “hot-knife” syndrome seem to be continuing, but I personally expect a bounce off 1.9676 support level. A low established from Thursday last week trading session. Considering that the pair have held it ground around this region in the last few weeks is important. I expect that to continue.

However, always remember as trading opportunities emerge many more are closing. Critical levels are chaos levels. This pair is no exception. Learn approach play with caution and you will prosper.

Have a great day of trading forex.

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Last night we commented on the direction of the GBP/JPY. We also specified the 62% level of the Fibonacci support at 206.75 a possibility on the Asian market as all “..indicators and trading analyses point south.” See yesterday’s post.

That support level has now been violated and further low of 205.50 seem very plausible. At the time of this post, the GBP/JPY is trading at 205.90/93. Several opportunities for profits have arisen to build pips but trade cautiously.

Have a great day of trading forex.

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