Dukascopy Bank Team
Dukascopy Bank SA
EUR/JPY 1H Chart: Channel Up
Comment: At the moment EUR/JPY is trading within the borders of a bullish channel, but the upside is expected to be limited by the major down-trend line at 129.50. The near-term outlook is positive, since the currency pair is well-supported at 127.80 (weekly PP, 200-hour SMA, and up-trend) and the hourly studies are pointing up. Meanwhile, the longer-term prospects are bearish, and again this is confirmed by the technical studies, this time on the daily time-frame. The sell-off could potentially extend through the current April low at 126.20 and down to 125.00. In the meantime, the sentiment of the SWFX market participants is strongly bullish, being that 65% of open positions are long.
GBP/JPY 1H Chart: Channel Up
Comment: Having found solid support between the price of 175 and 176 yen, the Sterling appears to be forming a bullish channel. In order to confirm the pattern, the currency pair must rebound from 177.70 (up-trend and daily PP) and subsequently rise beyond the Apr 8 high at 179.30.
Conversely, if the bears overpower the buying pressure, the demand area to try to stop the decline will be a cluster of supports around 177.20, where the daily S1 coincides with the weekly PP and 200-hour SMA. As for the sentiment, the SWFX markets seem undecided with respect to the pair’s perspectives, as 47% of positions are long and 53% 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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