Daily Chart Art – July 12, 2011

USD/JPY: Daily

USD/JPY Daily Chart

I know USD/JPY isn’t exactly the most exciting pair to watch, but y’all might want to consider keeping an eye on it over the coming days. It’s fast approaching the 80.00 major psychological handle, and if the market acts the way it did in the past, it’s only a matter of time before this bad boy shoots back up to 81.00! But be warned! The lower highs on USD/JPY’s daily chart could be an early sign that the pair is ready to break out to the downside!

USD/CAD: 4-hour

USD/CAD 4-hour Chart

My, my, my… is that a J-Lo (double bottom formation) in the works that I spy? USD/CAD has been rising up the charts as of late, and it looks about ready to give resistance at .9700 another shot. If it breaks through this time, it would basically complete the double bottom formation that I highlighted. But y’all know bears won’t give up without a fight! With Stochastic already deeply overbought, they might just push the pair back down to .9600!

GBP/JPY: Daily

GBP/JPY Daily Chart

I don’t know about you, but GBP/JPY is starting to look like a good buy to me! Over the past couple of months, sellers have dragged this sucker back down to the area of 127.00. As you can see, except for a fluke dip back in March (blame it on the earthquake), this is a level that held well as support in the past. If you’re not confident that 127.00 will hold, you could always wait for Stochastic to hit oversold territory and reversal patterns to form!

Before you get carried away with all these chart patterns, remember that technical analysis is only half the story.

To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.

Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals. Check him out, playas!

  • Chuka Madu

    I agree about the GBP/JPY