Today, we do have the ECB rate decision, so maybe it would be better to stay away from the common European currency. That is why I have two setups with the JPY. First one is the USDJPY, where the price created a head and shoulders pattern but failed to break the neckline. It was not easy though. The neckline was on the long-term up trendline. With this bounce, we do have a positive sentiment here.
Quite the opposite can be seen on the NZDJPY, where we still have a negative situation. Here, the price managed to break the neckline. Today’s upswing is just a normal pull-back, which will test the recent support as a resistance. As long as we are below the neckline, the sell signal is on.
OK, we cannot resist not to mention the EURGBP, especially with the setup like this one. EURGBP bounced from a horizontal resistance and the mid-term down trendline. They did that with a flag pattern and a double top formation. That is enough to go short here!
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis