Technical Analysis for Crosses

EUR/JPY

Risk filled the markets yesterday resulting in a major sell off of the Euro against the Yen as it was able to breach and close below the key support for the long term descending channel at 135.00. Today, the support has now become the resistance at about the 134.30s levels and we see so far several failed attempts of break this mentioned level. The pair is need of an upside correction as seen on the stochastic and RSI indicators yet mixed signals from direction indicators could suggest high volatility with slight potential to further downside movements.

Support: 133.06, 132.87, 132.60, 132.34, 132.05
Resistance: 133.81, 134.18, 134.43, 134.75, 135.03

GBP/JPY

The confirmation of the breach of the 74.6% correction for the long term upside channel at 174.59 has sent the pair to trade currently at the 166.70 levels as it faces a support level at 166.56. The unwinding of carry trades has added downside pressures to the Pound and it seems like it still has the potential to extend its losses to 165 before reaching the next medium to long term target at the 160 levels as it is supported by the ADX indicator. However, momentum indicators show the pair trading in an oversold area.

Support: 165.84, 165.40, 165.04, 164.60, 164.11
Resistance: 167.14, 167.65, 168.15, 168.72, 169.23

EUR/GBP

As the pound faces more downside pressures than the Euro, this helped send the EUR/GBP pair higher as it couldn't breach the resistance level at 0.8045 sending it back down to the 0.8020s as the current resistance level has now become 0.8033. On the daily and four hour charts, momentum indicators show the pair being overbought and as the ADX indicator is supporting the downside direction, we expect a downside correction that could take the pair down to 0.7990 – 0.8000 to gather momentum and breach the mentioned resistance level.

Support: 0.8006, 0.7991, 0.7978, 0.7963, 0.7951
Resistance: 0.8033, 0.8045, 0.8053, 0.8067, 0.8076

Crown Forex

disclaimer:The above may contain information for investors/traders and is not a recommendation to buy or sell currencies, gold, silver & energies, nor an offer to buy or sell currencies, gold, silver & energies. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. I am not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trading currencies, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, gold, silver &energies presented should be considered speculative with a high degree of volatility and risk.