Double top on the GBP/JPY 30 minute chart?

The Pound versus the Yen has been retracing for today to the 185.00 level where it has found a good resistance area and has formed what it appears to be a double top formation on the 30 minute chart. The double top formation is a bearish reversal pattern, which is confirmed once the price has broken below its neckline or confirmation line. The neckline on the current pattern is situated at the 184.68 level and we can see that the price is trying to break it to the downside. If a downward breakout is confirmed, then the price may try to go visit the 184.00 level where it has consolidated in the past.

Descending triangle on the USD/CAD?

The current chart formation that the USD/CAD has created on the daily chart looks like a descending triangle, except that the trend coming into the formation is bullish and normally these triangles tend to behave as continuation patterns. However, we can see how the price has tested many time the 1.2400 level, but it has made a higher high yet. Therefore, it is possible to see a breakout to the downside. In case we see a downward breakout, then we could wait for the pullback to the same 1.2400 level for a possible short entry.

Risk free buy entry on the GBP/USD

After the Pound versus the Dollar broke yesterday’s high to the upside, we decided to take a long or buy entry around that zone, anticipating a bullish continuation, especially if the price broke above the 1.5500 level. Price eventually broke above the 1.5500 level, but it is currently pulling back to the same level. At the moment, the 1.5500 level could act as a support, but the price may continue lower and go back below the 1.5500. That is why we decided to place out stop loss just above our entry point in case the price comes back down. To the upside, our take profit or target has been placed 20 pips below the next round number level of 1.5600.

EUR/JPY 15M – Possible pullback to the 135.00

The Euro versus the Yen has been quite volatile during today’s session. At the beginning of the day the Yen weakened due to a rise in the Nikkei, which has a negative correlation with the Yen. That is why we saw that the EUR/JPY broke above the 135.00 level and came very close to touching yesterday’s high around the 135.61 level. From that point, the pair started to drop after the testimony by Janet Yellen and came back to the 135.00 to break below it. But the price is trying to make a correction and if it visits the 135.00 level one more time, the zone could become a good resistance. A bounce to the downside from that level is possible, so let’s be attentive.

Possible bullish breakout on the GBP/JPY

The Pound versus the Yen has found a good resistance on the 184.00 level. This level has held the price back so far every time it reaches that zone, but let us keep in mind as the price keeps visiting the same resistance or support level, the chances of getting a breakout are higher. In case a breakout occurs, we could wait for the pullback for a possible long entry, but if the bullish momentum rises after the breakout, then the pullback may not have a chance to develop.

The GBP/JPY rallies back to the 183.00 level

The volatility on the GBP/JPY has risen today due to all the recent headlines crossing the newswires regarding the negotiations between Greece and the European Union. At the beginning of the session, the Pound weakened due to the disappointing retail sales report out of the UK, but just a few moments ago the GBP/JPY rallied back to the 183.00 level from the 182.00 level on news that Greece is ready to draft and accept a tentative agreement with the EU officials. From the 183.00, the GBP/JPY may try to bounce back down, but if the bullish momentum persists, then we could see a breakout of that level to the upside.

Pullback on the GBP/USD to the 1.5400 level

The Pound versus the Dollar has broken again above the 1.5400 level and it looks like it is trying to pull back to this same level. The 1.5400 zone could become a good support area and the price may try to bounce to the upside from there. Let us be attentive to a possible long entry from that zone. If the price breaks below the 1.5400 level, then the 55 EMA on the 4 hour chart could become a good support, but most important is the 1.5300 level where we can see the 200 EMA around as a support area.

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Possible pullback to the 1.5400 on the GBP/USD

The Pound has been strengthening versus its major peers after the fundamental data from the United Kingdom came out better than expected. That is why we have seen that the GBP/USD has broken above the 1.5400 level, which is also yesterday’s high. A pullback to this level is possible and if it happens, then that could be a good opportunity to go long. Let’s be attentive to that possible pullback on the 15 minute chart.

The EUR/USD stays range bound

The Euro versus the Dollar continues oscillating in a range between the 1.1300 and the 1.1400 zone. The price has tried to break those levels on several times, but it has not gain enough momentum to take a definite direction. The uncertainty surrounding the Greece debacle has kept the Euro trading within this range, but tomorrow we have the FOMC minutes and depending on what the FED had to say on its last meeting, the Dollar may move causing the EUR/USD to take a clear direction.

Bullish breakout on the Kiwi

The New Zealand Dollar has been strengthening versus the US Dollar and has broken above the 0.7500 round number level. Apparently the bullish momentum continues and a visit to the 0.7600 level is possible. If we see a pullback to the 0.7500 level, then that could be a good opportunity to open a long position. If the price does not pull back and just continues rising, then be attentive to a possible visit of the 0.7600 level, because we may get a bounce to the downside from there.

Oil stays stable just below the 54.27 level

During the bullish pullback that oil has had recently, we can see that the commodity has made a recent high around the 54.27 level. The oscillation inside the range between the 47.32 and the 54.27 is becoming tighter and tighter. We can see that some days have been bullish and some days have been bearish, but it looks like the main bearish trend has been losing strength. Let’s be vigilant for a possible breakout of the 54.27 to the upside and the pullback afterwards, because the zone could become a good support. To the downside, the 47.32 is its most recent support, but the 44.00 level is the most important support up to now.

Bearish correction on the GP/JPY

The Pound versus the Yen bounces to the downside after visiting the 184.00 zone and it is close to completing another 100 pip run. The 183.00 level could act as support and price may try to stall at that area or try to bounce to the upside again. However, we could see a break below the 183.00 level due to the fact that this pair could easily move more than 200 pips in a single day.

On the 5 minute chart we can see how the pair behaves on the round number levels. Usually price tends to respect those round number levels by acting in a predictable way. We could take advantage of those movements and look for entry opportunities either on a bounce or a breakout. 

Breakout-pullback on the GBP/JPY 15 minute chart

The Breakout-pullback pattern is based on the premise that once the price has broken an important support or resistance level, if it pulls back to it, the chances of it bouncing and going in the direction of the initial breakout are higher. That is what we are seeing on the 15 minute chart of the GBP/JPY, where the price has broken to the upside above the 183.00 round number level and has now pulled back to it. From this point on, the price may try to keep going higher. Its next resistance zone is the 184.00 level.

Long entry follow up on the EUR/JPY

We have seen a few days back that the 135.00 level on the EUR/JPY has become a good resistance zone for this pair. Due to the fact that the price has been visiting more often this level, the probabilities of a bullish breakout have risen. That is why we have decided to take a long entry just above the 135.00 level, expecting a continuation to the upside after the breakout. The take profit level is just below the 136.00 level and the stop loss is currently at breakeven. Therefore, this position is risk free at the moment. Let’s see how the price keeps behaving around this area.

AUD/USD 4 Hour Chart, breakout or bounce?

The Australian Dollar versus the Greenback has found a good support around the 0.7800 level during the last 4 hour candles. The price is currently visiting the 55 exponential moving average and it could try to break it to the upside. However, the 55 EMA has proven to be a good dynamic resistance for the AUD/USD on the 4 hour chart. If a breakout does happen, then a visit to the 0.7900 level is possible. Attention to a possible bounce to the downside from the 0.7900 level, because the zone was a good support in the past and now it may act as resistance.

The GBP/JPY has reached a key resistance area

After the Non-Farms Payroll report out of the US, the Dollar has strengthen and the Yen has weaken versus its main counterparts due to the rise in risk appetite. That is why we saw the GBP/JPY rising rapidly. After the pair broke the 180.00 to the upside, along with the 200 period exponential moving average on the 4 hour chart, it reached the zone between the 181.50 level and the 182.00 level. This 50 pip area could become an important resistance for the pair and we could see a bounce to the downside. The last 4 hour candlestick has closed with a “spinning top” formation, which indicates a possible exhaustion of the bullish rally. If the price comes back down to the 181.00 level, that area could become support again.

Symmetrical Triangle on the Kiwi 4 hour chart

The NZD/USD has consolidated around the 0.7400 level and has formed what appears to be a symmetrical triangle formation on the 4 hour chart. The symmetrical triangle is a continuation pattern, but we should be careful, because the price may break out in any direction. None the less, the pattern has a higher probability of breaking out in the direction of the trend coming into the formation, which in this case is upwards. A bullish breakout could take the price to the 0.7500 level, where it may find some kind of resistance. However, if the price keeps heading higher, it may touch the 200 period exponential moving average (blue line) around the 0.7567 level, which could become an important resistance for the pair.

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Pullback on the AUD/USD towards the 0.7700 level

The Australian Dollar dropped unexpectedly during today’s session after the interest rate cut announcement by the Reserve Bank of Australia. Initially, the AUD/USD drops from the 0.7800 zone until it breaks below the 0.7700 level. The pair has fallen to the 0.7625 level from where it has started to make a correction to the upside. At the moment, the price is very close to touching the 0.7700 area again, and the zone could become a good resistance for the pair, mostly because this is a round number level. Let’s be on the lookout for a possible bounce to the downside from the 0.7700 area, especially because a breakout-and-pullback pattern may develop.

First week of February is full of fundamental data

This week we have scheduled some very important fundamentals that could make volatility rise once again in the markets. On one hand, we have the PMIs from the United States, we also have the rate decision and statement from the Bank of England. Lastly, on Friday we have Non-Farm Payrolls out of the US, this piece of data is very important and it could create high volatility in the markets. It is expected that the US economy created 231,000 new jobs during the month of January. If the reading comes out better than expected, then the greenback could strengthen and the EUR/USD could reach new lows.