One pair that I’m still keeping a very close eye on is USDJPY. The pair recently broke out of a bullish wedge formation and looks to have re-positioned itself above the support zone between 102.80 and 103.
This market is too extended at the moment to consider a long entry, however a pullback to the area mentioned above could present us with a favorable setup.
With the April high of 104 currently acting as resistance, there’s a good chance of this market pulling back some before the next leg up which may include an eventual test of the year open at 105.25.
Summary: Wait for a pullback to the 102.80 – 103 support zone and watch for bullish price action. Potential profit targets would include 104 and the year open at 105.25.
EURGBP recently broke out of trend line resistance from March of this year and now looks to be setting the stage for a bullish reversal.
If we move to the 4 hour chart we can see the market holding above the .7968 daily support level and forming well-defined trend line resistance. We can therefore watch for a break of this resistance level in an attempt to join the bulls.
Summary: Wait for a 4 hour close above trend line resistance and then watch for bullish price action on a retest. Key resistance appears to come in at .8080.
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