Daily Chart Art – January 19, 2011

GBP/JPY: 1-hour

GBP/JPY Chart

Have the pip-gods turned the tables on GBP/JPY? Currency bulls have been pushing the pair up the charts recently, as the 1-hour chart is sporting a rising trend line. Though Stochastic has remained in neutral territory for past few candles, it’s also looking a lot like it’s going up. Don’t get too excited though. The bearish divergence on the daily chart that I pointed yesterday is still looming over the pair! If you’re feeling bold and daring you can aim for the 133.00 handle with this potential upward movement, but if you’re one of them bears, then you can play a break in the trend line all the way to the 131.00 handle. Stay sharp!

USD/JPY: 4-hour

USD/JPY Chart

Range traders beware! It looks like USD/JPY has been slowly squeezing into a tight falling wedge, hinting at a possible breakout soon. If the pair manages to break through the falling trend line resistance and close above 83.00, we could see the bulls push price all the way to 83.50 region before experiencing resistance. On the other hand, if the pair is able to pierce through the falling trend line support and close below 82.30, a move towards former lows at 81.50 is likely.

EUR/USD: 4-hour

EUR/USD Chart

DENIED for the fourth time! EUR/USD has been struggling to break past the major resistance at the 1.3400 handle in the 4-hour chart, and Stochastic is now waving a signal that the bulls are losing momentum. Is the bearish divergence a sign for the bears to attack? If you’ve already sharpened your bear claws, then you might want to aim for the 1.3085 or even the previous low at 1.2900, but if you still feel love for the euro, then you can wait for a break in the resistance and see if the pair can reach 1.3600.