Daily FX Training | Learn Forex with the Dynamic Traders: Awaiting breakouts

Dear Dynamic Traders,

Welcome to the start of another trading week. Hope you have had an outstanding weekend.

Today's pairs for review are the Cable and the EURJPY.

The daily chart for the Cable shows price having reached a resistance area (which is also a Fib breather level more apparent on the weekly chart) and then some level of sideways movement. The question is what next? The highlighted area shows the oscillation, ideally we want price to break up through the resistance so established trend may resume and simple filter employment will ensure entry into a trade.

Should price decide to reverse, it is less simple as additional confirmation would be required and it means trading contra trend until a trend is established.

The EURJPY is showing a recent pullback, with the VI acting as support and price is currently near a RN. There is nothing obvious to suggest a change in trend, we have been continuing to witness higher highs and higher lows although the approaching trend line/squeeze should be kept in mind . A entry may be sought at the break of a trend line on a slightly shorter time frame or at the break of a previous high.