Daily Chart Art – July 20, 2010

EURJPY: Daily

PoD Chart

Hmm, are those double bottoms I see on EURJPY’s daily chart? Why, it looks like that chart pattern could signal that the pair’s downtrend is about to end. The pair is hovering around the neckline, possibly gearing up for a breakout. If it does break the neckline, it could make a climb that’s at least as high as the height of the formation, which is roughly 500 pips. On the other hand, if the neckline resistance holds, the pair could make another bottom near the 108.00 handle.

GBPJPY: 4-hour

PoD Chart

Up, down, up, down… Well, it looks like guppy is jailed inside a range on its 4-hour chart. There’s supportat the 131.30 area and resistance near 136.00. How long would the pair be stuck inside this range? The stochastics are still pointing down, which means that sellers could still have enough juice to take this pair lower. The pair could once again find support at 131.30 and bounce back until the top of the range.

CADJPY: Daily

PoD Chart

Lastly, lemme finish off with a whiff of CADJPY. It appears to me that the pair is consolidating on the longer time frame and is forming a triangle. Notice how recently, it has been forming significantly lower highs while the lows have somewhat remained the same. Checkin’ my black book on candlestick patterns, this looks like a descending triangle, which means that there could be some bias to a downward break. Look for a bearish candle that closes below the 81.00 handle as a sign that this pair could be headed for new lows.

  • sosc77

    Thanks for the superb heads up Pippin. I traded this last week when you first brought it to our attention. She looks like she will break pretty soon.

  • sosc77

    Thanks for the superb heads up Pippin. I traded this last week when you first brought it to our attention. She looks like she will break pretty soon.