It looks like USDJPY is presenting us with another chance to short! As you can see from the hourly chart, the pair has formed a bearish flag after a very steep drop. Considered as a continuation pattern, the bearish flag pattern usually indicates that another strong move down is coming. In this case, we’re looking for a clear break of 87.30, for USDJPY to test former lows at 87.00. If a candle closes above 87.50, it would mean that the bearish flag has failed, and a move towards 88.00 is likely.
Surf up’s mate! Or should I say, surf’s down? It looks like resistance at .8860 is holding on AUDUSD. Will it stay strong? Or will a wave of buying pressure push the pair higher? Look for a strong candle close above .8860 as a sign of buying power. On the other hand, if resistance holds, we may just see the pair dip all the way to the .8500 handle, which has been an area of interest in the past.
Here’s an update of the daily chart of NZDUSD I put up earlier this week. The pair seems to have found resistance at the .7300. Is the recent up move coming to an end? After all, I see some bearish divergence forming, as price has formed higher highs but stochastics has posted lower highs. If selling pressure kicks in, we may see price drop to test resistance turned support at .7155 and possibly further down at .6820.