The GBPJPY continues to offer excellent trading opportunities within its well structured channels. Price has steadily risen in a price channel for the past month, offering several low risk trade entries. Traders should take note of the GBPJPYs recent failure to reach the upper channel line, which may signal a weakening of the trend.
As expected, the Euro quickly sold off after tagging resistance near 1.38, and is likely to quickly drop to retest the 1.3450 low set last week. If momentum picks up, we could see a test of the much stronger 1.33 level in the not too distant future. The fundamental factors strongly support a drop in the Euro, as numerous countries teeter on default.
Looking at another major Euro cross, the EURGBP, we can confirm the weak Euro outlook. Prices sluggishly rose to test a falling trendline and resistance, both at .86, and quickly reversed back down. The weekend gap closed within 8 hours, and we’d expect a quick ride back down to .8450.
Written by bforex.com