Daily Chart Art – December 22, 2010

USD/JPY: 4-hour

USD/JPY Chart

Somebody call 911 because USD/JPY is on fire! Just check out that ascending triangle on the 4-hour time frame. Sizzlin’ right? Well, it looks like the pair has already bounced from the rising trend line. With Stochastic indicating upward momentum, it seems like buyers are revving up to take another shot at resistance around 84.40. If they are successful, there’s a good chance for USD/JPY to end back up at 85.80. However, if there aren’t enough buyers, USD/JPY could tumble to 83.00.

CAD/JPY: 4-hour

CAD/JPY Chart

Up and down it goes! CAD/JPY has been bouncing inside a rising channel for almost a couple of months already. Right now, the pair is sitting at the bottom of the channel, still deciding whether to make another bounce or to go for a breakout. If it breaks below the rising support level, it could fall until the psychological 81.00 handle or lower. However, Stochastic seems to be crawling out of the oversold area already, which means that Loonie bulls are starting to push the pair higher. Watch out for a move towards the top of the channel if we see a bounce!

GBP/JPY: 4-hour

GBP/JPY Chart

Now let’s get the lowdown on GBP/JPY. Unless my Ray B’s are fogged up, I think I see the pair just kickin’ it like Adidas at a resistance-turned-support area. But hold up! It looks like buyers are getting ready for another run up the charts with Stochastic being in the oversold turf, and the three reversal candles (spinning top, long-legged doji and hammer) which the pair just recently formed. If there’s enough pound-lovin’ to go around, we may just see GBP/JPY hustle all the way to 131.30. You may want to wait for more confirmation before you root for the bulls though. Who knows, sellers could push the pair down to 128.20.

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