Safe haves have had a tough time recently, but trading pound sterling against the Japanese yen may be a great idea this week. We also take a closer look at the interesting formation of the Australian dollar. AUDUSD has slowed down, which opens a great opportunity.
For the GBPJPY currency pair, we see the formation of an uptrend that moves inside a large green channel.
Over the past month, the price has been moving in the center of the green channel. The bulls and bears did not have enough strength to hold the market and lead it. The last section of the chart describes a small yellow channel.
In the current situation, there are two possible price behaviors. In the first option, we can see the growth of the market. If the bulls can bring the price to the upper yellow line and break through the resistance level of 142.44, then they will have a clear path to the upper green line and the resistance level of 144.38.
The second option considers a situation in which the market moves in a downward direction. If the bears bring the price to the lower yellow line and can break through the support level of 140.51, then the price decline will continue to the lower support level of 139.21, which is on the lower wall of the green channel.
The current formation of the AUDUSD currency pair shows a bullish trend that moves within the green channel.
From November 2020 to January of this year, the price went up from the lower wall to the upper wall of the green channel. After that, we saw the price rebound from the upper wall and the beginning of a decline. This section describes a small yellow channel.
Perhaps the market decline will continue. If the bears manage to break through the lower yellow line near the support level of 0.763, the price will continue to fall to the lower green line and the support level of 0.758, which is on it.
Alternatively, the currency pair is expected to rise towards the upper yellow line, and if the resistance level of 0.777 breaks, the price may reach a higher resistance level of 0.801, which is on the upper line of the green channel.