Chart Art: Correction Levels on Bitcoin (BTC/USD) and EUR/JPY

EUR/JPY 4-hour Forex Chart

Picking up on strong trend signals lately?

I’ve got you covered with these neat setups on the 4-hour charts of BTC/USD and EUR/JPY!

Let’s start off with this textbook retracement setup on EUR/JPY.

The pair has been cruising below a descending trend line connecting the highs since late June, and it looks like another test of resistance is in the works.

Are sellers about to return soon?

EUR/JPY is already hovering around an area of interest or support-turned-resistance zone that happens to be right smack in line with the 50% to 61.8% Fib levels.

Not only that, the potential ceiling also coincides with the dynamic resistance around the moving averages. If that ain’t strong enough to keep gains in check, I don’t know what is!

If you’re looking to short, watch out for reversal candlesticks right around the 138.00 to 139.00 major psychological levels close to the trend line.

The 100 SMA is below the 200 SMA to confirm that the selloff is more likely to resume than to reverse. In addition, Stochastic has been indicating exhaustion among buyers for a while and looks ready to move south to signal a return in bearish pressure.

In that case, EUR/JPY could make its way back to the swing low at 133.58 or lower.

Are bitcoin bulls charging again already?!

BTC/USD has been trending higher inside a rising channel on its 4-hour time frame, and it looks like buyers eagerly hopped in at the mid-channel area of interest.

If this is enough to hold as a floor, bulls could be setting their sights on the upside targets marked by the Fibonacci extension tool.

The rally is hitting a bit of resistance at the 38.2% level, but stronger bullish vibes might take it up to the 61.8% extension at $25,000 near the channel top. Even stronger upside momentum could lift BTC/USD all the way to the full extension around $26,500.

Moving averages are confirming a continuation of the climb, as the 100 SMA is above the 200 SMA. However, Stochastic is reflecting overbought conditions and might turn lower to spur another pullback.

If that’s the case, watch out for a larger dip to the channel bottom just above $22,000 and the 200 SMA dynamic support.

Good luck and good trading, fellas!

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