First on the list is the 4-hour chart of GBP/JPY. As you can see, the pair seems is currently heavily testing the 128.00 resistance-turned-support area. With the Stochastic about to hit overbought conditions, we could see the pair drop down soon. If you’re bearish on the pair, watch the 128.00 for bearish candlestick reversal patterns carefully!
If you’re one of those range traders, then you’re going to love how CAD/JPY has been moving. The pair has been bouncing around a 150-pip range for a couple of days now with support and resistance levels holding. With the pair slowly ticking lower, we could see another bounce at 82.15, a very important and key support level.
Of course, I’m not going to leave my trend-trading homies out of the loop! EUR/GBP’s daily chart shows that the pair has been supported heavily by a rising trend line. Since Stochastic is pointing upwards and the pair has consistently been making “higher lows” and “higher highs,” I’ve got reason to believe that the pair will continue higher and test the .9000 major psychological level again.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.