AUD/JPY Will Likely Continue Rising

Even though AUD/JPY is not a EUR-related currency pair the French presidential elections had an overall effect on the market and that pair too opened with a bullish gap that has not been recovered yet. The pair has been consolidating sideways above the resistance at 83.00, which coincides with the (MA)89 indicator on the four-hour time-frame, since the beginning of this week and so far there is no indication that it will break out below it. If anything, the signal is for a new move to the upside, as the pair has formed a hammer candlestick and a doji candlestick above that level on the same four-hour time-frame, as well a spinning top candlestic on the daily time-frame. If AUD/JPY does start moving to the upside the closest targets are at 83.80 and the previous high at 84.00.

GBP/JPY Is Moving to the Upside

After GBP/JPY broke above the resistance at 139.40, which coincided with the (MA)89 indicator on the daily time-frame, the pair kept moving to the upside and today that movement continues, even though the pair formed a distinct doji candlestick on the same daily time-frame at 143.50, which, it should be pointed out, is a signal for indecision, not necessarily a reversal. Not only did this move continued, but it also broke out above the aforementioned resistance. Should GBP/JPY continue rallying, the first major target on its way up is the resistance at 146.00 and a breakout above that level will likely mean that there will be a further move to the upside towards the previous high, which is at 148.44.

EUR/USD Formed a Double Top

EUR/USD formed a large 200-pips gap after the market opened on Monday and recovered it only partially before moving to the upside again, forming a new high at 1.0950. It appears, however, that the move to the upside is over at least for now, because the pair formed a double top on the one-hour time-frame at that same 1.0950 level, as well as a spinning top candlestick on the four-hour time-frame and started moving to the downside. Currently the pair is still quite bearish and the move to the downside will likely continue towards the support at 1.0850, which coincides with the (MA)89 indicator on the one-hour time-frame. A breakout below that level could lead to another attempt for the pair to recover the gap.