USD/JPY breaks major resistance of daily downtrend channel 2016.10.04

EUR/USD

4 hour

The EUR/USD is moving sideways as part of a large consolidation zone, which is indicated by the support (green) and resistance (red) trend lines. An ABCDE triangle chart pattern (blue) is most likely unfolding within wave X (purple) unless price breaks above the invalidation level (pink). A break below support (green) indicates that a wave Y (brown) is most likely starting within wave d (green).

1 hour

The EUR/USD broke the support (green) of the smaller triangle yesterday and price seems to have moved down as part of a bearish ABC zigzag (orange). A bullish bounce could occur at the Fibonacci retracement levels if a bullish pattern appears. The bounce could see price challenge the 1.1250 zone. A break below the 100% Fibonacci level invalidates wave B (green) but also a bear flag pattern makes an ABC zigzag (orange) less likely and a new bearish wave count more likely.

GBP/USD

4 hour

The GBP/USD broke below the bottom (dotted green), which means that a bearish impulsive wave count is currently valid. Price is now moving towards the Fibonacci targets although there is one more bottom remaining at 1.28 (equal to the 50% Fib).

1 hour

The GBP/USD broke the support trend line (dotted green) and a new bearish impulse become visible. A break of support could see price fall towards the other Fibonacci targets.

USD/JPY

4 hour

The USD/JPY is trying to break above the resistance of the daily downtrend channel (dotted red), which would confirm the potential for a wave 3 (purple).

1 hour

The USD/JPY broke above the resistance (red/orange) trend lines which sparked the start of a wave 3 (brown/blue) bullish momentum. Price is now moving towards the Fibonacci targets. Any bullish flag chart patterns or small consolidation zones could see further potential breakouts.

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