Hello traders today let’s take a look at GBPUSD and USDJPY pairs.
GBPUSD made a nice five-wave drop from the 1.321 level, which is a sign of a completed higher degree wave C, and that a new bearish cycle is in play. We know that after a five-wave price development fully unfolds, a three-wave correction follows which can in our case look for resistance and a bearish reversal near the 1.299/1.300 region, or area of Fibonacci resistance ratios of 38.2/50.0.
USDJPY keeps moving higher, now also supported by a new push up on US stocks yesterday. Technically speaking we still see USDJPY in wave C that broke out of a triangle so upside can be limited, but its important to see a drop back below 110.45. Also from my experience, if you see straight moves from Sunday open till Wednesday, then it is worth to consider that market may slow down or even reverse in the second part of the week.