Good day traders,
The market presents us with three siblings.
Don’t mind me friends, I call them siblings because they have the Japanese yen as one of the currency pair and their price action also tends to behave alike.
So, let’s get down to business.
1. EUR/JPY
EUR/JPY is currently touching a key resistance level (131.705), and the close of the 10 pm candlestick will speak volumes as regarding the next movement of price.
If the candlestick closes with a bearish pin-bar, we should see price on a bearish run to a former support level (129.198). A breakout from the current resistance will set the bulls on fire, and we may see price hit the next resistance level (133.459).
2. GBP/JPY
GBP/JPY has both a minor and major descending channel.
Currently, price is hanging on the roof of the minor channel (148.476). A bearish pin-bar formation on the 10 pm candlestick will most likely determine price direction for the rest of the week.
A bearish pin-bar will most likely send price back to the support or base of the channel (144.538), on the other hand, a breakout of the resistance will send price on a bullish run for the rest of the week.
3. AUD/JPY
Lastly, AUD/JPY broke out from a descending yesterday, and continued it’s bullish run today.
Currently, price is on a key resistance level (81.790). My bias on AUD/JPY is that there would be some pull-backs tomorrow before we see a breakout to the next resistance level (82.827) or a price reversal which may send price back to support level 80.706
In all of these setups, extreme caution and patience is required, else you may get trapped in a fake reversal/breakout.
I hope these analysis assist you in your trading plans.
Do have an awesome day ahead
