It always feels good to share my trading experiences and analysis with you. This week, I was following the EUR/JPY very closely. The pair has been going upwards very slowly for the last couple of weeks. At the start of the week, I guessed that the buyers may target the 130.60 to 131 area as potential levels for going long on the pair. The area between 133 and 134 could be the dead zone for buyers where they may run out of their steam.
The positive sentiment about British Pound has been a blessing for all the GBP pairs. After being confined in a consolidating pattern, the pairs are gradually breaking out in the higher timeframes. The GBP/JPY has pulled back to 156.00, which is great news for the bulls. If the pair breaks past the previous week high, an uptrend will be almost confirmed.
In one of my last blog posts, I predicted that EUR/GBP will touch the major psychological level of .3400 and guess what, it did! What’s more, the pair went a bit above that level too. As the trend is still there and UK has a bullish sentiment, a downtrend could occur in this week. This pair has turned the .8400 into a resistance level. If that level is retested, lots of sellers will be there to go short on this pair. However, if the pair breaks past .8355, the previous weeks low, there will be a long downward trend for the pair.