HomeContributorsTechnical AnalysisDaily Technical Analysis: USD/JPY Challenges Support Trend Line At 110

Daily Technical Analysis: USD/JPY Challenges Support Trend Line At 110

Currency pair USD/JPY

The USD/JPY broke below the support trend line (dotted blue) and is now testing the next support (green). A bounce and break above resistance (red) could indicate that wave X (orange) has been completed whereas a break below the 138.2% Fibonacci level invalidates wave X (orange).

The USD/JPY break above the 61.8% Fibonacci level invalidates wave 4 (pink). A final wave 5 (pink) after a wave 4 (pink) retracement could for instance bounce at the 100% Fib level of wave X vs W (orange) and 110 psychological round level.

Currency pair EUR/USD

The EUR/USD is struggling to show strong bullish momentum above the resistance trend line (dotted orange). When looking at an hourly chart it seems more likely that a wave 2 or B retracement will occur soon.

The EUR/USD could still be in a wave ABC (orange) because it did not break below the 138.2% Fibonacci level of wave B vs A. A break below that level indicates a downtrend continuation whereas a break above resistance (red) could spark a wave C (orange).

Currency pair GBP/USD

The GBP/USD failed to break above the previous top or 78.6% Fibonacci resistance level and is now breaking below the support trend line (dotted green) which changes the expected wave structure. The failure of the bullish price movement makes it a wave X (orange). Price could now be retracing to the Fibonacci levels of wave X vs W (blue).

The GBP/USD bearish breakout below the support level of the mini triangle (dotted blue) made an ABC (purple) zigzag within wave Y (pink) of wave X (orange) more likely than a 12345. The wave 4 (purple) developed as a bear flag and broke earlier today. A larger ABC zigzag (pink) could occur before completing wave X (blue).

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