Forex Technical Analysis
Denis Gramovich | Sep 25, 2020 08:04AM ET
Since the beginning of September, GBP/JPY has been moving in a downtrend, ignoring the resistance level of 135.6. But the trend fizzled out and the price drop stopped at the support line of 133.0, where the rebound took place and the growth began. All this time, the price decline (from 142.4 to 133.0) occurred without any significant corrections. And this is another reason why a significant growth can be expected.
Thus I assume that the currency pair will continue to rise to the resistance line of 137.8.
EUR/JPY has been in a downtrend since September 10. During this time, the price dropped from 126.2 to 122.9. This situation resembles that in July, when after a two-week fall, having reached the support line, the price returned to the resistance line. Therefore, now a correctional upward movement to the resistance line 125.2 can be expected. And this is a good opportunity for "the bears" to make a sell deal.
Since there is no reason to suppose that the price will be able to gain strength and finally overcome this barrier. That's why, I assume the EUR/JPY price to come to the support line 121.3 after few more pullbacks.
After a month of unstable growth, CAD/JPY has returned to the upper border of the falling channel, in which it has been moving for the past few years. And now the price is near the strong resistance line at 79.2. CAD/JPY shouldn't be expected to break through it again in the near future. Moreover, the price will most likely work out a small correction to this resistance line, and then fall to the support line 75.38.
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At the end of last week, GBP/NZD had tested the September low, having approached the support line at 1.907, after which it started an uptrend remaining within the growing channel (in which it has been moving since 2016). Besides, the price can be expected to make several more corrections to the support line, accumulating the strength for a more stable growth.
In this case, we should assume that GBP/NZD will start growing in an uptrend from this line to the resistance one (and at the same time, the upper border of the growing channel) 2.151.
“Bulls” should hold off for now and wait for the price to return to the support line, and only in this case open a buy deal.
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