USD/JPY, GBP/USD Build Sturdy Trend Channels

USD/JPY

4 hour

The USD/JPY is in an uptrend channel which could be part of a larger bullish wave 3 pattern. This is invalidated if price breaks below the support trend line (green) of the uptrend channel. A bullish breakout above the channel resistance would confirm the bullish breakout.

1 hour

The USD/JPY will need to break above the resistance (red/orange) now or later to confirm the wave 3 pattern (purple). For the moment, the Fibonacci levels and the support trend line could stop price from falling.

GBP/USD

4 hour

The GBP/USD is probably in a wave 1-2 (green) unless price breaks below the 100% Fibonacci level of wave 2 vs 1. The current bearish channel could also be a bear flag pattern if price manages to break above it.

1 hour

The GBP/USD is also showing a triangle pattern. A break below or above the triangle could indicate a potential breakout.

EUR/USD

4 hour

The EUR/USD could be in a wave C (purple) of a larger bearish ABC retracement. An impulsive wave C could develop if price is able to break below the support trend line (blue). A bearish breakout could see price fall and challenge the Fibonacci levels of wave 2 vs 1 (pink) whereas a bullish breakout will face other layers of potential resistance.

1 hour

The EUR/USD break above the resistance trend line (red) could be part of a larger wave 1 (pink), although new resistance levels are nearby (red lines). A break below the support trend line (blue) could see price fall towards the Fibonacci levels of wave C and 2.

Follow @ChrisSvorcik on twitter for latest market updates.
Connect with Chris Svorcik on Facebook for latest Forex and education tips.