Tue, Mar 21, 2023 @ 07:49 GMT
HomeContributorsTechnical AnalysisDaily Technical Analysis: USD/JPY Continuously Testing 110 Support And 112 Resistance

Daily Technical Analysis: USD/JPY Continuously Testing 110 Support And 112 Resistance

Currency pair USD/JPY

The USD/JPY is probably continuing with an ABC zigzag (brown) towards the 50% Fibonacci support level of wave 4 vs 3 (purple). Currently price action is building a sideways zone, which is indicated by the trend lines: support (green) at 110 and resistance (orange) at 112.

The USD/JPY is in a neat downtrend channel (orange/blue) that is testing a larger support (green) trend line. A break of that support zone could see price move lower towards the Fib targets whereas a break above resistance (orange/red) could indicate that wave 5 (orange) has been completed.

Currency pair EUR/USD

The EUR/USD could have completed the 5th wave (orange) within wave 1 (green) when considering the strong bullish 4 hour candle. A break below the 1.0570 bottom could see price continue towards the Fibonacci targets of wave 5 (orange).

The EUR/USD 1 hourly chart is confirming the potential bullish reversal. Price seems to have completed 5 waves (pink) and has broken above resistance (dotted orange). Price could now be building a wave 1 – 2 (pink).

Currency pair GBP/USD

The GBP/USD could have completed an ABC (pink) zigzag correction within wave Y (orange) of wave X (blue). A bullish bounce could sent the pair higher to test resistance of the wave E (green) triangle.

The GBP/USD is probably building an ABC zigzag (green) but technically it could still be a wave 4 (purple) too, as long as price stays below the 61.8% Fibonacci level of wave 4 vs 3 (purple).

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