Daily Chart Art – May 13, 2010

GBPJPY: 4-hour

PoD Chart

There are a lot of triangles forming on the yen crosses, but let me start with the most volatile one – the GBPJPY. As you can see from the 4-hour chart I posted, over the past few days, price action has been the slower and choppier than usual, which has caused the pair to consolidate into a nice little symmetrical triangle. This chart pattern hints at a possible breakout, wherein price could go either way once it busts out from the tip of the triangle. In this case, we’re looking for a rise towards the 145.00 handle if the break is upwards, while a move towards 135.00 if the break is downwards.

AUDJPY: 4-hour

PoD Chart

A similar setup could be found on the AUDJPY 4-hour chart. Now, if we see a 4-hour candle close above the top of the symmetrical triangle, the pair’s next stop would probably be at the previously broken rising trend line. On the other hand, if the formation breaks out downwards, the pair would most likely fall to 80.00 because this level is both a former low and a psychologically significant number.

NZDUSD: Daily

PoD Chart

Lastly, lemme freestyle over onto the daily chart of the NZDUSD. The pair has been stuck in a rising channel the past couple of months, just swimming up and down and up and down. With price now approaching the rising support line, we may see buyers jump back in and push price back up to test the top of the channel near 0.7400. On the other hand, if sellers decide to switch styles, they may go for a break and test previous lows around 0.7015.