On the daily timeframe of the Euro versus the Japanese Yen(EURJPY), we have a double top formation. Price was on an uptrend from August last year and both tops of the double top are shy the near term level by a few pips. The near term resistance level has resisted price which caused the formation of the double top.
The market opened on a gap which caused the most recent candlestick to open past the neckline. However we can’t validate this as a breakout just yet. We need a confirmation by another bearish candlestick. Following a confirmation of the breakout, we may be looking at lower future prices.
The British Pound versus the US Dollar (GBPUSD) has been on a tearing uptrend for the past 5 months that topped at the major level. Price has been consolidating at the major level forming a series of higher lows and lower highs which resulted in the formation of a symmetrical triangle.
This particular chart pattern can cause a reversal or a continuation of the previous uptrend depending on the direction of the breakout. Therefore, we wait for the breakout and price action confirmation and follow price accordingly.
Disclaimer: This analysis is for educational and general information only and not advice or a recommendation to trade or invest. Do your own research/analysis and don’t blindly enter trades based on the analysis.