Daily Chart Art – October 16, 2009

GBPUSD: 1-Hour

PoD Chart

The Cable made some strong drives in yesterday’s price action. The pair broke out from a symmetrical triangle during the early part of the Asia session. In doing so, it gave it enough juice to move past the psychological 1.6100 resistance shortly afterwards. Just recently, it broke out again from a pennant formation which enabled it to penetrate another significant level – 1.6300. Presently, it is trading just above the mentioned mark and since its short term uptrend is still intact, it may continue move higher. It can reach 1.6400 if 1.6300 holds. On the other hand, it may fall back down at least to the short term uptrend line if it closes below 1.6300.

EURJPY: 4-hour

PoD Chart

Here’s a look back at the EURJPY. It looks like the pair has just broken past the recent falling trend line and continued to shoot all the way up! The pair is now sitting under resistance at 135.30. The question is, will resistance hold? If buyers continue to dominate, we may see them try to take the pair to test previous highs at 136.00. However, if sellers decide to jump back in the markets and bring their A game, we may see price reverse from the resistance. Sellers may bring price action to test 133.80, which was a previous resistance area.

USDJPY: Daily

PoD Chart

Last but not the least, let’s take a look at USDJPY’s daily chart… The pair has been on a sharp dive for almost a month now and it seems like the sellers need to take a break. Right now, the pair looks like it’s having difficulty making it past the 91.00 psychological resistance level. But the pair could continue its retracement, probably right until the 38.2% Fibonacci level, which is a few pips away from psychological resistance at 92.00. If it heads lower, it could find support at 90.00, another psychological level. Or it could continue its dive and drop even lower than its previous low of 88.01.