The GBPJPY pair is being held down by resistance at 150.000 and held up by support at 140.000. With the range established, price action has found some support today at the rising trend line. This line was broken in August but is trying to reassert itself at the 146.000 level. Yesterday’s low was 145.797 and this is just above the 145.694 level which has acted as resistance at the end of August. It is also the level of the 100 DMA. A loss of this area may result in a drop to 142.590 where support was used in late August/early September. Below this area, the 140.000 zone of support comes into focus.
Resistance at today’s high of 146.735 will be a key level to overcome if traders want to reach 147.000. The 200 DMA is positioned just above this level at 147.150. If price can manage to break this area and continue higher to 148.000, the way may be open to retest the highs at 149.736. The rising trend line resistance is currently about to cross over the 150.000 level and this could form a strong area of resistance. Above the 150.000 level, resistance might be encountered at 151.000 but ultimately the 153.879/154.000 area would attract trader’s attention.
The EURCHF pair is testing the 1.1400 area today with a low so far at 1.1392. The price action has formed a channel between the rising support trend lines. And the lower trend line provided support at the low so far today. A loss of this area may see price test the 50 DMA at 1.1350. Below this area the 1.1300 level may provide support followed by the 1.1282 level from the end of September. The 1.1250 and 1.1200 levels also points at which support may form with a loss of the latter level shifting focus to 1.1183, as last month’s low.
Resistance might come from the 100 DMA at 1.1445 just below the 1.1450 level. These points could form an area for traders to work with but a break higher may signal a move to this current month’s high at 1.1492. This level guards the way to 1.1500 with the upper rising trend line just above at 1.1510. From there a move to 1.1600 cannot be ruled out with the 200 DMA positioned just below this level at 1.1591. The 1.1600 area was used as support and resistance during the summer and a move up through this area may lead to an attempt on 1.1700 and the high at 1.1730.