In the world of forex trading, traders are always on the lookout for potential trading opportunities. One approach that traders often use is technical analysis, which involves studying historical price data and chart patterns to identify potential future price movements. Recently, traders have been keeping a close eye on three major currency pairs: CHFJPY, EURJPY, and GBPUSD, as they anticipate a short-term reversal in these markets.

The CHFJPY Performance

CHFJPY is trading at the resistance zone.

The recent price action on CHFJPY provides a scenario of a double-top formation which could cause the market to drop. The highs of the ascending structure are also aligning with the resistance zone and therefore provide confluence to the downside. According to this price action, traders anticipate a short-term recovery of the Yen against the Swizz which will provide a trading opportunity to the downside.

The EURJPY Performance 

EURJPY is developing a similar price action to CHFJPY.

EURJPY has already dropped +110 pips from the resistance zone around 147.747 and the top of the ascending structure. This area is likely going to cause buyers to take profits and exit their positions. Similar to the price action and outlook of CHFJPY, traders anticipate a short-term drop back to the support zone and the 61.8 fib level around 145.400.

The GBPUSD Performance

GBPUSD is also trading in the resistance zone.

GBPUSD recently broke below the ascending channel and the previous support zone around 1.24481 after creating a higher high. The market pushed back up however it is struggling to break above the broken structures and continue the uptrend.

This price action provides signs of a possible push to the downside and as such, traders are keeping an eye on the resistance zone and the 61.8 fib level for rejection and a short-term trading opportunity to the downside.

Read More: EURAUD & NZDCAD Up +100 Pips Respectively

Final thoughts on today’s analysis 

In conclusion, traders are closely watching CHFJPY, EURJPY, and GBPUSD for potential short-term reversals. Technical analysis, along with other factors, is being used to identify potential trading opportunities in these currency pairs. However, it's important for traders to exercise caution and use proper risk management techniques when engaging in forex trading. As always, staying informed, disciplined, and adaptable to changing market conditions is key to successful trading.