Dukascopy Bank Team
Dukascopy Bank SA
GBP/JPY 4H Chart: Channel Up
Comment: The British Pound is likely to continue appreciating relative to the Japanese Yen. Right now GBP/JPY is trading between two well-defined parallel trend-lines, and there are no major resistances ahead. The nearest such historically important level is as far as 215.86, where the currency pair made a U-turn back in July of 2008. Nevertheless, we expect a correctional sell-off to start in the vicinity of 200 yen. We also should not rule out a small dip in the short run, down to 193.43, before the pair starts forming an up-leg. As for the sentiment of the SWFX market, the traders are mostly bearish towards the Sterling. At the moment 70% of open positions are short.
EUR/CHF 1H Chart: Channel Down
Comment: While on the higher time-frames the Euro is bullish, after bottoming out in April, on the hourly chart there is a strong case in favour of a near-term decline. During the next several days every new high is likely to be lower than the previous maximum. Right now the ceiling at is 1.0519, where the daily R2 merges with the upper trend-line of the bearish channel. However, every step closer to the major support trend-line at 1.0320 will increase the upside risk, and for the time being this is seen as a floor, which is expected to turn around the current downward trend around. In the meantime, a large portion of open positions, namely 74%, is short the Euro.
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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