The USD/JPY pair went back and forth during the course of the day on Wednesday, as we ended up forming a fairly neutral candle. This neutral candle was towards the bottom of the recent action, so therefore if we can break above the top of the range for Wednesday, this should send the market looking for the 115 level. On the other hand, if we break down below the bottom of the range for Wednesday, the market should then reach towards the 110 level. Ultimately, the one thing you can count on is quite a bit of volatility.
The EUR/USD pair fell significantly during the course of the day on Wednesday, but turned back around and closed above the 1.10 handle. That being the case, if we can break above the top of the hammer we are buyers as it would show that the market has broken out recently, come back and retested the previous resistance, only to find support yet again. Ultimately, if we hpw can break above the red line on the chart, we feel that the market could go as high as the 1.13 level above which had been so resistive previously. The currency pair is headed for support near an upward sloping trend line that comes in near 1.0940. Resistance is seen near the 10-day moving average at 1.1130.
The GBP/USD pair fell significantly during the course of the day on Wednesday, breaking below the 1.40 level. By doing so, the market looks as if it is vulnerable to the downside and a break of the range for the day would be reason enough to start selling. If we bounce from here, short-term exhaustive candle near the 1.40 level would also be a selling opportunity. At this point in time, looks as if the British pound is going to continue to be very soft, due to fears of the United Kingdom leaving the EU.