Daily Chart Art – March 16, 2011

USD/JPY: Daily

USD/JPY Chart

I know you must be keeping close tabs on this pair so I decided to put up an update for you! USD/JPY broke below the bottom of the symmetrical triangle on the daily chart, which means that it could be headed further down. As discussed in the best forex education site I know, the potential move after the breakdown could be the same size as the height of the chart formation. In this case, the symmetrical triangle is more than 500 pips tall, which means that we could be in for a 500-pip drop from here. However, stochastic is almost at the oversold area already, suggesting that sellers are starting to lose steam.

USD/CHF: Daily

USD/CHF Chart

USD/CHF is on a roll! For the past three days, the pair has been showing red candles on the daily chart. Will the dollar bears take a breather today, or will they drag the pair to new lows? A retest at the previous support around the .9350 area is your best bet if you’re feeling bullish on the pair, but you can also use the level as your stop loss if you’re predicting gloom and doom for the Greenback. Be careful though, because stochastic is already near the oversold region.

AUD/JPY: Daily

AUD/JPY Chart

Look at the Aussie drop! AUD/JPY sported a long red candle on the daily chart yesterday and finally broke the rising trendline that had been holding since November 2010. It ended the day near 80.00 though, which could provide support for the pair. With stochastic near the oversold area, the 81.00 handle is looking pretty sweet for a short entry. But if you’re one of them Aussie bears, then you could also make a run for the 78.00 level.