News & Analysis

Eightcap Forex technical insights; Continuation patterns developing EURJPY and GBPJPY

Jun 27, 2018 | Forex News

As the trade war continues to hurt risk, tonight we’re seeing patterns setting up on a few major JPY pairs. If they confirm they could set-up new legs lower. Let’s take a look at the daily charts below.

EURJPY – Overall trend remains down, after a push higher buyers where knocked back after forming a new lower high. Buyers held sellers setting up a new HL making a start to the current triangle pattern. 128.53 stands as the current pattern resistance, these patterns can confirm as bearish continuation patterns as price continues to be squeezed. If it completes and breaks lower, there a possibility the break out could run 180 pips lower as per normal measured move rules.

GBPJPY – as like the above, made a new lower high before declining to a new higher low on the 19th of Jun. Price has consolidated into a pendant pattern. These patterns can go either way but analysts lean towards the last legs direction. In this case, it was a down leg. Traders will be watching this pattern for a breakout to show the new direction balance. These patterns can also be measured to give an idea of a possible break out target. If we see a downside breakout off a measured move the target could be seen 200 pips below. 

Good trading from Eightcap




* The information provided here has been prepared by EightCap’s team of analysts. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and do not reflect the opinions of EightCap.

In addition to the disclaimer on our website, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. EightCap accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

Please note that past performance is not a guarantee of or prediction of future performance. This communication must not be reproduced or further distributed without prior permission.