Dukascopy Bank Team
Dukascopy Bank SA
EUR/JPY 4H Chart: Triangle
Comment: The outlook is strongly bullish on EUR/JPY, as the currency pair has just broken out of the pattern to the upside. Considering the height of the pattern, which is 750 pips, the price has the potential to rise up to 143 yen. But the Euro will have to overcome a number of tough resistances. The first barrier is around 137 yen, where the monthly pivot point merges with the long-term SMA and some of the recent highs, followed by the monthly R1 and weekly R3 just above 140 yen. And while the technical indicators mostly reinforce the positive bias, the SWFX traders are not entirely convinced that the Euro is going to outperform the Yen. At the moment only 53% of positions are long.
GBP/CAD 4H Chart: Channel Up
Comment: GBP/CAD has been in a clear up-trend since the very beginning of May, and the bullish momentum is likely to persist. Concerning the shorter-term perspective however, we expect a correction. The Sterling should be sold-off down to the lower edge of the channel and the monthly R1 at 1.99 before demand overpower supply. If the price does not bottom out here and dives deeper, additional supports are at 1.96 and at 1.95 represented by the 200-period SMA and Jul 9 low, respectively. As for the market participants, they are divided in two almost equal camps: 53.5% of open positions are long and 46.5% are short.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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