Daily Chart Art – November 11, 2011

USD/JPY: 4-hour

USD/JPY 4-hour Chart

Better strap on your trading seatbelts, playas, because USD/JPY is about to hit a key level! The pair has been slowly approaching the 77.50 handle, and it looks like this could be a prime spot to catch a retracement. If the 50% Fib level holds and the pair pops up, the rally might not stop until it reaches 78.00. On the other hand, if you’re expecting yen bulls to break through this level, look for price to keep falling at least until it hits 77.00.

GBP/JPY: 4-hour

GBP/JPY 4-hour Chart

Are you in the mood to play a long-term trend line? If you are, GBP/JPY’s got just the thing for ya! Just like USD/JPY, this pair has been crawling down the charts ever since the Bank of Japan intervened in the markets. But unlike USD/JPY, this pair has had a long-term trend line to support price. The question is, will it stay intact? So far, it has been holding up quite well. But be warned! If candlesticks start closing beneath 123.00, it could be a sign that GBP/JPY is in for big losses.

EUR/GBP: 1-hour

EUR/GBP 1-hour Chart

Rounding up this week’s Chart Art, we have this sweet setup on EUR/GBP. As you can see, we have a clear area of interest in the .8560 zone. What makes this area particularly interesting is that it’s right above the 61.8% Fib level and is consistent with the recent downtrend on EUR/GBP. Euro bears may want to take advantage of this by selling the pair at this level. Euro bulls, on the other hand, should wait for a convincing breakout above this level before committing to a long position. Whatever you decide to do, play it safe by waiting for confirmation from candlesticks, homies!

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 Forex Fundamentals.

Like what you've read?
Join over 40,000 other traders who get our newsletter. Tutorials, EAs, chart setups, free forex trading systems, and more!

1 comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>