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.