Let’s start off with the USDJPY 1-hour chart. The pair has been trending higher lately and an ascending trend line can be drawn connecting the lows of the price. After its most recent bounce from the trend line, it climbed to a high of 91.33 before pulling back. It has just rebounded from the 38.2% Fibonacci retracement level but the stochastics seem to be unsure about where the pair is headed next. If the pair resumes its climb, it could encounter resistance at the psychologically significant 91.00 handle. On the other hand, if the pair continues to edge lower, the downward price action could reverse upon hitting the 50% Fibonacci level, which coincides with the upward trend line.
Let’s move on to my analysis of the Cable. As you can see from the chart above, the pair is clearly on an uptrend. Earlier today, it already moved past the psychological 1.6400 handle. This level could now act as support that could push the pair towards 1.6500. Though, there’s also a chance that the pair could fall given that conditions are already overbought based on the stochastics. If 1.6400 does not hold, the pair could retrace back to the uptrend line or down to 1.6300.
Similar to the Cable, the AUDUSD pair is also on an uptrend. Presently, the pair is yet again trading on a new yearly high. We could see the pair reach new heights if risk appetite persists. Specifically, it could stretch to 0.9350 if it could close above the resistance at 0.9300. On the flip side, the pair could also correct to 0.9250 or down to its uptrend line if it couldn’t move past 0.9300.