Daily Chart Art – December 13, 2010

AUD/JPY: Daily

AUD/JPY Chart

If you’re a big fan of golf, then you’ll like what you see on daily of AUD/JPY! Over the past few months, trading has been pretty tight on the pair, as it appears to be forming into a wedge. This formation normally signals that a break out is imminent, so keep an eye out for any strong marubozu candles that close above or below the resistance and support levels. Be careful though, because if you miss hit on this one, you may find yourself back in the bunker!

EUR/JPY: 4-hour

EUR/JPY Chart

The game is on for the currency bulls and bears! Who will win this EUR/JPY tug-o-war on the 4-hour chart? The bulls currently have the upper hand with higher lows forming an ascending triangle, but it looks like the bears have the 111.60 handle well-defended. Let’s see if the bulls manage to push the pair all the way above 112.00, or if the bears still have enough roar in them to drag the pair to the previous low near 108.50.

GBP/JPY: 1-hour

GBP/JPY Chart

Looks like the pound is losing steam against the yen! GBP/JPY is forming lower lows in the 1-hour chart after encountering resistance at the 132.75 handle. Also, Stochastic is sporting a sell signal with its crossover from the overbought region. Keep close tabs on the price action and see if traders will yank the pair all the way to the 131.75 handle, or push it above the 133.00 level.