EUR/USD & USD/JPY Build Classical Triangle Chart Patterns 2016.01.19

EUR/USD

4 hour

The EUR/USD seems to be building a bearish correction as part of a wave X (blue). As long as price stays above the trend line support (green), then an expansion of a wave WXY (blue) seems the most likely scenario.

1 hour

The EUR/USD seems to have completed an ABC bearish zigzag (green) back to support (green). A break below support could see price fall towards the Fibonacci levels. A break above resistance (red/orange) could see price start a wave Y (of blue).

GBP/USD

4 hour

The GBP/USD has again reached the bottom of the downtrend channel. Price has also hit the 78.6% Fibonacci target and has the potential to fall towards the next Fib levels.

1 hour

The Cable respected the 38.2% Fibonacci retracement level of wave 4 (grey) and made a bearish turn. Price could face support at the trend line and Fib targets.

USD/JPY

4 hour

The USD/JPY is near the daily support levels (blue), which could cause price to show a bullish bounce. If price does break the resistance trend line (orange), then this could confirm the continuation of a wave Y (brown).

1 hour

The USD/JPY seems to be building a large corrective chart pattern when viewing the trend lines (orange/green).