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Technical Analysis
18 June 2021
Trading spotlight
Every day we analyse the market trends, select the most newsworthy asset, and prepare technical analysis on it—to help you reduce risks and get prepared.
- All
- GBPJPY
- EURJPY
- BTCUSD
Pay attention to GBPJPY
What happened earlier
GBPJPY dropped to 153.102 after the U.S. Federal Reserve signalled to raise interest rates and ended emergency bond-buying sooner than expected. Hence, the pound fell versus the yen to its lowest level since March, and there have been no fundamental developments overnight driving the pound up. In the meantime, inflation in the U.K. unexpectedly jumped above the central bank's 2% target in May.
What the picture is now
The wide-open Bollinger Bands indicate increased volatility and suggest a bearish sentiment. The RSI, which is under 50, and the Stochastic both points to a prevailing downtrend.
What the possible outcomes are
- In the most likely scenario, the GBPJPY pair may challenge the first support level of 153.528.
- If the pair falls below the first support level, we can expect a further decline to the second support level of 153.102.
- Conversely, it's possible to see the pair fail to break the first support level and rebound towards the first resistance level of 154.006.
- If the pair breaks the first resistance level in our least likely scenario, we can expect to see a rise towards the second resistance level of 154.453.
Keep EURJPY in sight
What happened earlier
The EURJPY pair fell to 130.946 as traders reversed their bets on risky assets such as the euro. After the surprising bank decision to begin increasing rates earlier than expected, investors believe that currencies like the U.S. dollar and the yen are more perspective. Today, the Bank of Japan maintained its policy rate and said it would extend its COVID-19 support program.
What the picture is now
The wide-open Bollinger Bands indicate increased volatility. The RSI, which is under 50, and the Stochastic both points to a prevailing downtrend.
What the possible outcomes are
- In our most likely scenario, the EURJPY pair may experience a downwards correction towards the first support level of 130.946.
- If the pair falls below the first support level, we can expect a continued downtrend towards the second support level of 130.243.
- Contrarily, the pair may initially rise towards the first resistance level of 131.852.
- If the pair manages to surpass the first resistance level, we should expect a continued surge towards the second resistance level of 132.369.
Stay aware of the BTCUSD movement
What happened earlier
The price of BTCUSD sank to 38,251 USD after failing to break 40,000 USD. The asset's value fell sharply after the U.S. Federal Reserve issued a press release following the June meeting. Since mid-May, bitcoin's market shares have grown gradually, and altcoins are losing in price much more than the first cryptocurrency. Although, the view that bitcoin is a hallmark of speculative excess and foam is still going strong, even after last month's 35% plunge.
What the picture is now
The wide-open Bollinger Bands indicate increased volatility and suggest a bearish sentiment. The RSI, which is under 50, points to a downtrend, while the Stochastic suggests a possible upwards correction.
What the possible outcomes are
- In our most likely scenario, the BTCUSD pair may experience a downwards correction towards the first support level of 35,823.23.
- If the pair falls below the first support level, we can expect a continued downtrend towards the second support level of 33,826.41.
- Contrarily, the pair may attempt to break the first resistance level of 38,251.35.
- If the pair manages to surpass the first resistance level, we should expect a continued surge towards the second resistance level of 40,569.41.
Please note! This is not a direct instruction on which order to open. When applying this information, you remain solely responsible for the decision you make and financial risks you take.