Daily Chart Art – March 1, 2011

EUR/JPY: 1-hour

EUR/JPY Chart

Not so fast euro! Although the shared currency is lookin’ fly against the yen after it bounced from the 38.2% Fibonacci retracement level, it seems like it still has to trade past resistance at the top of the descending channel. If there are enough bulls around, EUR/JPY may just go all the way up to around 113.80. However, if resistance holds, the pair could tumble to the 112.00 handle.

EUR/USD: Daily

EUR/USD Chart

It looks like EUR/USD is currently at a crossroad as it tests a major resistance level. With Stochastic already at overbought territory and price unable to close above the most recent high yesterday, will we see resistance hold? If you’re bullish on the pair, look for a close above 1.3850 as confirmation to go long. On the other hand, if you’re part of the bear camp, a drop below 1.3700 could mean that the pair is headed to test previous lows.

USD/JPY: Daily

USD/JPY Chart

Oooh la la! A spinning top has formed on the rising trend line of USD/JPY that I pointed out last week. Is it time to cruise with the bulls all the way back up to the 83.00 handle? Err, you may want to wait for more confirmation, just to be safe. Take note that although the Stochastic lines are already in the oversold area, they still haven’t crossed yet. But who knows?!? The bears may just be lurking around the corner waiting to pounce on the pair and push it back down to 80.30.