Daily Chart Art – January 22, 2010

GBPJPY: 4-Hour

PoD Chart

Do you remember that symmetrical triangle on the GBPJPY 4-hour chart I showed you yesterday? Well, the pair just made a strong breakout to the downside yesterday! Before doing so, the pair made one last retest of the top of the symmetrical triangle before plummeting all the way down to a low of 145.45. The pair could have some difficulty moving past the 145.20 to 145.50 area since this served as a support level before. Also, the stochastics are already in the oversold area, suggesting that sellers could be exhausted. The pair could climb to retest the broken support of the symmetrical triangle or even reverse course and surge all the way up to the resistance level around 149.10 to 149.20.

GBPUSD: 1-Hour

PoD Chart

Let’s move on to the GBPUSD 1-hour chart. After finding support at the 1.6250 level for more than a week, the pair had a breakdown yesterday. Although this suggests that the pair could continue falling down, the pair seems to be pulling back a bit. It could retrace back to the 1.6250 area, which is in line with the 38.2% Fibonacci level. It could also climb a bit higher, possibly until the 50% Fibonacci retracement level, which coincides with a minor resistance level. If the pair drops back down, it could find support around the previous low of 1.6125.

AUDJPY: 1-Hour

PoD Chart

Here’s another update on the AUDJPY pair that I made yesterday. Zooming in to its 1-hour time frame, you can see that after moving back above the head’s shoulders’ neckline, the pair finally made a clear breakdown. The pair fell sharply after correcting to the 61.8% Fibonacci retracement level that I drew. Presently, it is trading above 81.00. It has a downside bias since it is now exchanging on a downtrend. It, however, could range for awhile above the 81.00 mark before making a downward move again.