Daily Chart Art – May 20, 2011

GBP/JPY: 4-hour

GBP/JPY 4-hour chart

Well, well, what do we have here… GBP/JPY looks like it’s going to break out of a symmetrical triangle formation! As you can see, a 4-hour candle almost closed above the falling trend line yesterday, hinting that the bulls may be in control of the pair. If you’re bullish on the pair, then keep a close eye on it! A break of the falling trend line resistance could push the pair up to 134.00, a whole juicy round number and a previous resistance level.

EUR/JPY: Daily

EUR/JPY Daily chart

Next up, check out this mighty fine setup on EUR/JPY! After breaking out of a double top formation, the pair has now retraced back up to the 38.2% Fib level, which just happens to line up with the former neckline. Could the 117.00 handle be a potential support-turned-resistance level? Look for another reversal candle as a sign that the bears might come back to send this pair back down.

AUD/JPY: 1-hour

AUD/JPY 1-hour chart

Last but not least is this potential Fib setup on AUD/JPY! This baby has been trending up in the past couple of days, but right now, it looks as though it could be due for a retracement. If you’re feeling bullish for this pair, you may want to catch it as it meets the rising trend line at the Fib levels. If it does find support there, don’t be surprised to see it bounce back up to retest yesterday’s high at 87.50!

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 Economic Roundup. Check him out, playas!

  • Nikhilpillay

    I went short on the EUR/JPY and its turning out to be one sweet trade! Thanks for the super recommendation !

  • 123685

     Very good Analysis. Keep it up!