Daily Market Report – GBP/JPY Breakdown In Play October 02, 2017

GBP/JPY Turned To The Downside

Price drops and resumes the minor corrective phase. We had a false breakout above the 151.66 static resistance and now should drop further in the upcoming period. Is trading in the red and approaches an important horizontal support.

The GBP/JPY drops as the Nikkei has slipped lower in the last hours and tries to close the morning gap up. The JP225 moves sideways and stays in the buyer’s territory, is trading above the 20320 previous high, signaling a further increase in the upcoming period. The sellers failed to keep the price under the 20320 static support (resistance turned into support).

Technically, the Nikkei should climb much higher after the failure to come back down to retest the 20058 horizontal support, but will receive a confirmation only after will jump and will close above the 20498 previous high.

Price drops further after the false breakout above the 151.66 level, you can see that has come back to retest the horizontal resistance, but failed to close near this upside obstacle.

A valid breakdown below the 150% Fibonacci line will send the rate towards the 148.46 static support, where he may find support again. Only a valid breakdown below the mentioned static downside obstacle will confirm a major drop. Support can be found at the first warning line (WL1) as well.

However, an accumulation above the 148.48 static support could signal another leg higher in the upcoming period.

EUR/CHF Breakdown Needs Confirmation

The EUR/CHF opened with a gap down the trading session and it seems poised to resume the bearish movement. Is trading in the red on the short term, signaling that the bears are in control. Price is facing a tough support, is pressuring the WL4, but is somehow expected to drop further in the upcoming period.

Technically, it should be attracted by the median line (ml) of the descending pitchfork, only a failure to reach this level will signal another increase towards the upper median line.

EUR/GBP Trading In The Green

Price increased and is almost to reach the third warning line (WL3) of the descending pitchfork. It seems like we had a false breakdown below the 100% Fibonacci level, but only a valid breakout above the WL3 will confirm a further increase towards the median line (ML) of the ascending pitchfork. Price is somehow expected to climb much higher after the failure to reach the median line (ML) of the descending pitchfork.

By Olimpiu Tuns – Market Analyst

I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com, countingpips.com, forexalchemy.com, etc.

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