Chart Art: Bullish Correction Levels on EUR/JPY and GBP/JPY


Feel like going with the flow this March?

Check out these trend-following setups on the hourly charts of EUR/JPY and GBP/JPY!

Here are the levels where more buyers might be waiting:

EUR/JPY: 1-hour

This one’s forming a fresh uptrend on the short-term chart, as price is just about to make its third test of a new rising trend line!

EUR/JPY is closing in on the area of interest around the 143.50-144.00 region, and I’m seeing pretty strong confluence right here.

Not only does it line up with the 50% to 61.8% Fibonacci retracement levels, but it also coincides with the dynamic support at the moving averages!

Technical indicators are also showing that the odds are in favor of more gains. The 100 SMA just crossed above the 200 SMA to suggest that bulls have the upper hand while Stochastic looks ready to turn higher.

Going long at market could be a good option if you don’t want to miss out on a possible rally back to the swing high, but you can also opt to wait for a larger dip to the actual trend line if you want a more conservative entry.

GBP/JPY: 1-hour

Now this trend on Guppy has been going on for a bit longer, so there might be better chances of support holding again for this pair.

Price is still in correction mode as it tests the 50% Fib, which happens to be drawing some buying interest at the moment.

A larger retracement could reach the line in the sand at the 61.8% level, which is closer to the 100 SMA dynamic inflection point and ascending trend line at the 163.00 major psychological mark.

Both moving averages and Stochastic are giving the green light for uptrend continuation. The 100 SMA is safely above the 200 SMA to reflect the presence of bullish vibes, which have been around since mid-February.

At the same time, Stochastic is starting to pull up from the oversold region to confirm that buyers are returning while sellers are taking it easy.

If these support levels are enough to keep losses at bay, GBP/JPY could make its way back up to the swing high near the 166.00 handle and beyond!