Technical Update: EURJPY, GBPJPY and EURGBP

October 23, 2015 12:51

EURJPY

Repeated failures to break four month old descending trend-line, coupled with dovish statement from ECB, seems pulling the EURJPY towards 133.20 – 133.00 horizontal support region; though, a break below which becomes less expected as next week's BoJ could weaken the JPY and may provide a bounce to the pair. On the upside, 200-day SMA, presently near 134.50, is likely immediate resistance for the pair, breaking which 38.2% Fibonacci Retracement of its April – June rally, near 135.30, and the mentioned descending trend-line resistance, currently at 136.50, can possibly limit the pair's consecutive up-move. Further, pair's ability to manage a closing break above 136.50, could immediately trigger its advance towards 23.6% Fibo, near 137.50 and ultimate rise to August highs, around 139 psychological level. Meanwhile, a close below 133.00 can be followed by the 132.20 and the 61.8% Fibo level of 131.80 while sustained trading below 131.80 can make the pair vulnerable enough to plunge towards sub-130.00 region.

GBPJPY

Following its bounce from a year old ascending trend-line support, presently near 182.10 – 182.00 area, the GBPJPY managed to surpass the 185.00 – 185.30 important resistance region, encompassing 200-day SMA and 50% Fibo of its April – June rally; however, failure to sustain a tick above 186.00 seems pulling the pair back to 185.30 – 185.00 zone. Given the pair's inability to hold 185.00, it can come down to 183.60-50 support-zone and then to 183.00 round figure mark, including 61.8% Fibo, before testing the said trend-line support at 182.10 – 182.00. Moreover, extended declines below 182.00 can further weaken the pair to test 76.4% Fibo, near 179.70. Alternatively, sustained trading above 186.00 signals the pair's march to 187.30 and the 38.2% Fibo, near 187.80. If the pair surpasses 187.80, chances of its rally to 189.00 and the 23.6% Fibo, near 191.00 round figure mark can't be denied.

EURGBP

On Thursday, the EURGBP extended its declines below 0.7300 area and confirmed the "Rising-Wedge" bearish technical formation; however, the 23.6% Fibo of its November 2014 – July 2015 decline and 100-day SMA, near 0.7190 - 0.7215 seems restricting the pair's immediate moves. Should the pair closes below 0.7190, it can extend the downtrend to 0.7110 – 0.7100 intermediate support area prior to testing the 0.7000 psychological magnet. Moreover, a daily close below 0.7000 can make the pair vulnerable enough to look for 0.6800 region test. On the upside, a tick above 0.7215 can be restricted by the 200-day SMA, near 0.7250, breaking which 0.7300 round figure mark and the 38.2% Fibo, near 0.7350, are likely consecutive resistances that it could witness during successive up-move. Though, 0.7450-60 horizontal area becomes strong upside resistance to limit the pair's rise beyond 0.7350.

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