Daily Chart Art – May 26, 2011

EUR/JPY 4-hour

EUR/JPY 4-hour chart

First up, I’ve got Cyclopip‘s favorite cross pair, EUR/JPY! After topping out at the 117.00 handle late last week, the pair nose-dived to as low as 114.00 on Monday. Currently, the pair has retraced back to the middle of a rising channel and is finding some resistance at 116.00. With Stochastic now in No Man’s Land, this pair could go anywhere! Look for strong marubozu candles as a signal as to what direction this pair is headed.

AUD/JPY 4-hour

AUD/JPY 4-hour chart

I know how y’all love those breakouts, so here’s a setup on AUD/JPY. The pair has consolidated into a tight symmetrical triangle, and the only question now is, which way is it gonna break out! I’d wait for a strong candle close above 87.00 before going long. Now, if you’re in the bear camp, I suggest waiting for a bearish red candle close below 86.00 before even thinking about going short!

CAD/JPY 4-hour

CAD/JPY 4-hour chart

No my friends, you aren’t cross-eyed and seeing double – that’s actually a chart of CAD/JPY! Just like AUD/JPY, the pair is forming a symmetrical triangle and I highly suggest waiting for marubozu candles that close above 84.00 or below 83.00 before establishing a position. Take note that the range on this playa is a lil tighter, so don’t get too ambitious!

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!