USD/JPY doesn’t normally move much, but when it does, you can be sure that the move will be great. In this case, we’re seeing the pair consolidate as it climbs slowly to the 79.50 level. If price manages to get up that level, we may see the bears jump in again and push the pair lower. It has happened twice in the past already, so it is likely that the third test will also result in the same thing.
If you’re really bullish on the Aussie, then you’ll be very happy to know that the long-term timeframe shows that it is going up! The pair just found significant support at the rising trend line support, and from the looks of it, it still has a loooooooong way to go. The next major resistance won’t be coming up anytime soon keeping your long bias is a good idea.
Be careful bears! The EUR/GBP daily chart shows that the move down could be coming to an end. As you can see, a doji has formed right above the .8300 handle. Since the doji indicates that neither the bulls and the bears were able to gain the upper hand in yesterday’s trading session, we could see a direction change soon, especially with the Stochastic showing oversold conditions.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.