GBP/JPY pausing at projected ST target of 169.74 – but picking tops here has been dangerous

FXstreet.com (Barcelona) - GBP/JPY finally takes a breather over the last few sessions after touching the next potential upside target at 169.74. More upside appears likely after a pullback to at least 166.60.

GBP/JPY traders to react to Japanese data and a speech from British leadership

GBP/JPY traders will be reacting to Japanese Machinery Orders data which just came out better-than-expectations. Later during the European session, some of Britain’s Monetary Policy leadership will be out making speeches and headlines.

Technical outlook for GBP/JPY

Technicians say that GBP/JPY has hit a short-term stopping point at third wave projected resistance at 169.74. A fourth wave correction lower is expected now with a downside target of 166.60 at a minimum with lower targets possible. The next upside target comes in at the Fibonacci-generated 171 – with the ultimate target for this macro up move up near 178.

EUR/AUD drifting lower to form the cup and handle?

EUR/AUD has risen from the 1.5020 supporting line but has met resistance and the handle of the cup is starting to form a convincing bullish signal.
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Flash: US to strengthen – BTMU

Lee Hardman at The Bank of Tokyo-Mitsubishi UFJ noted the comments from the Fed’s Bullard on Monday and suggests that the dollar will gradually strengthen.
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