EUR/JPY: Short-Term Buy
EUR/JPY, 4-Hour Chart Analysis
The pair has been drifting lower in recent weeks, breaching the long-term rising trend-line this week. The downward momentum looks to be fading, underlined by the divergence in the MACD indicator. A possible failed break-down is developing on the 4-hour chart giving a low-risk entry for a short-term long position, with favorable stop-loss opportunities.
The 119 zone provides a good stop-loss exit level while the 121.20 resistance could be considered as a target level, with an initial target of 120.40. Long-term investors might also enter a position with a slightly wider stop-loss, probably below the 118.25 support level. For them the upper boundary of the long-term channel could serve as a target zone.
GBP/USD: Short-Term Sell (Update)
GBP/USD, 1-Hour Chart Analysis
Both the Pound and the Dollar have been relatively strong against their major counterparts in the last couple of days, although the pair is still trading lower since our initial sell recommendation. The hourly chart shows a distinct 1-hour swing low near a prior short-term support level, which triggered a defensive move, to tighten the stop-loss on the recommendation in order to avoid losses.
Long-term traders cold even consider establishing a long position with if they think a new leg up is coming. The 1.2380 support provides an ideal stop-loss level. The prior high at 1.2615 is next major resistance level ahead.