Ring the alarm! I think I see USD/JPY breaking out of that symmetrical triangle! If the pair manages to close with a strong bullish candle above the falling trend line, we may just see it rally all the way up to 82.00. So watch out! Just don’t get too excited rooting for the dollar yet though. Who knows, what we’re seeing could be nothing more than just a fakeout and USD/JPY may slip below 80.00 again.
Oh and here’s another yen pair sportin’ a triangle. Connecting the highs and the most recent lows on EUR/JPY, a descending triangle materializes. If there are enough euro bulls in the market, we may just see the pair trade higher and test resistance at 114.50. Heck, if there’s enough euro lovin’ to go around, we may even see it hustle all the way up to 115.50! On the other hand, if there are more sellers, EUR/JPY may just close below support at 113.80 and plunge to 112.50.
Remember that channel I pointed out on USD/CAD last week? Well, it looks like there were enough buyers to push the pair all the way up to the .9800 psychological handle and test resistance at the top of the channel. Will resistance hold? Maybe. Just keep an eye out for reversal candlesticks as they may signal that USD/CAD would tumble down to support at .9750. But be on your toes for a strong break above the resistance area as this could mean that the pair would rally to .9950.
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!