USD/CAD is another pair that has the potential to make significant moves in the near term.
GBP/JPY: another way to bet on the pound
SELL 139.20; TP 138.60; SL 139.40
The dire situation for the British pound continues. Although many of the negative things such as the likely resignation of Prime Minister Theresa May are probably already priced in, the uncertainty about the future should keep the sterling under pressure. The Japanese yen, on the contrary, may stay in demand as investors worry about trade tensions between the United States and China.
GBP/JPY is testing levels below the support of the last 4 trading days at 139.50. The previous attempt to break higher has failed. The focus in now at the 61.8% Fibo of the 2018-2019 advance at 138.60. The next Fibonacci level is at 135.70.
Last week USD/CHF broke below the uptrend support line of 2018.
CHF/JPY met the resistance of the declining 50-day MA and turned down. Its potential target lies at the support line connecting the lows of May in the 108.25 area.
If we see a pullback from the lower 'Window', the pair is likely going to test the nearest Moving Averages...
Bearish Ichimoku Cloud with falling Senkou Span A and rising Senkou Span B; a dead cross of Tenkan-sen and Kijun-sen with falling lines.
The picture on W1 looks very much like the “Head and Shoulders” with the neckline at 3.68 or 3.56.