GBP/JPY: Would it break the 135 to the downside?

The GBP/JPY has fallen rapidly during Friday’s session after the Bank of Japan disappointed the markets by implementing a lower than expected stimulus package, which made the Yen rally versus its major peers. The pair has reached the 135.00 level where it stalls, but the bearish momentum may stay in place and it is possible to see a breakdown of that level for the next couple of trading sessions. If the pair does break below the 135.00 level, then it may reach the 132.00 or the low at the 128.67 level. If the pair bounces to the upside, then the first resistance could be the 139.00 level or the 55 day exponential moving average, purple line.

Range is getting tighter on the GBP/USD

The GBP/USD on the daily chart has been consolidating around the 1.3200 level and the range has been getting tighter forming what it appears to be a symmetrical triangle. From this point on, the pair may break out in any direction, but usually these formations act as continuation patterns. If the breakout is to the upside, then the pair may find resistance around the 1.3532 level or the 55 day exponential moving average. If the breakout is to the downside, which in such case it would be called a breakdown, then the first support could be at the 1.3000 level, but a much better support could be the low at the 1.2800 level.

EUR/GBP: Consolidation continues

The EUR/GBP has been consolidating as shown on the daily chart and the range has been getting tighter forming what it appears to be a symmetrical triangle. From this point the price may break out in any direction. But there could be a slight probability of it breaking to the upside, due to the fact that the pair had been trending upwards and the current consolidation may just be a pullback to continue higher. If the price breaks to the upside, then the high at the 0.8629 could act as a resistance. To the downside, the 0.8200 or the 55 day EMA may act as support. Below those levels, we can see some important support levels at the 0.8000 and at the 200 day exponential moving average, around the 0.7856 level.

The EUR/JPY breaks the 116.00 level

The EUR/JPY has found a good resistance zone around the 118.00 level as shown on the daily chart. Very close to the 118.00 level we can also see the 55 day exponential moving average, which has also contributed in making that zona a good resistance. The price bounces to the downside and today it breaks below the 116.00 level after the Yen strengthen amid expectations of the decision by the Bank of Japan for this Friday. The pair may continue lower and if it does then it may reach the 111.00 level.

Breakdown confirmation on Oil

WTI oil has been dropping steadily for the past few trading days and today it breaks below the 200 day exponential moving average and the 44.00 level. The bearish trend may continue and right now the road is clear all the way to the 40.00 level. However, we must be attentive to a pullback to the 200 day EMA, where the price may bounce back down and complete a breakout-pullback pattern. Above the 200 day EMA, its next resistance may be the 46.00 level along with the 55 day EMA, purple line. As long as the price of WTI oil stays inside the bearish channel shown on the daily chart, it may continue lower.

Breakdown attempt on WTI oil

WTI oil has been in a well-defined bearish channel with a good support at the 200 day exponential moving average. To the upside the 46.00 level has been acting as a good resistance and it may continue to do so. Today the price of WTI oil breaks below its 200 day EMA and below the 44.00 level, but the breakdown was short-lived due to the fact that the price went back up above the 44.00 level. If during next week oil continues going down, it may try to go and visit the 40.00 level, with the road practically clear until that level. The bearish momentum may accelerate, but also a bullish bounce is possible.

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