Check out the action on AUDJPY’s daily chart. There’s a rising trend line connecting the pair’s lows and, at the same time, there’s a falling trend line connecting its highs. Aha, that’s about to form a symmetrical triangle right there! Right now, AUDJPY is moving closer to the top of the triangle. Will we see an upside breakout or will it slide back down to the bottom of the triangle? The stochastics, which is in the overbought area, suggests that the pair could find resistance at the top of the triangle and is poised to head down. Then again, bulls could be aggressive enough to take the pair much higher, especially if a candle closes significantly above the 80.00 handle.
After spotting that symmetrical triangle on the 4-hour chart of GBPYJPY, I couldn’t help myself from hollering, “Where are you swimming to Guppy?” Ha! Get it? See Pip Diddy ain’t the only one here who has a sense of humor. Anyway, it seems like stochastics, indicating upward momentum, is suggesting that buyers may have the upperhand against the sellers. But will there be enough of them to successfully push the pair past the 130.00 handle? If there are, it’s possible for us to see GBPJPY tap the 131.00 handle. Then again, sellers may take advantage of the resistance at 130.00 and push GBPJPY down to Friday’s low at 129.00.
Is AUDUSD sportin’ a rising wedge on the 4-hour chart? Oh la la! It looks like the bears could be in for a treat today! Because aside from the rising wedge, it looks like the pair also formed a hanging man candlestick. Boo yeah! But wait, let’s not get too excited. If we home in on the 1-hour chart it seems like the pair is finding some support at the weekly open price at 0.9297. Hmm, I think it’s better if we wait a while for this one. After all, the stochastics lines haven’t crossed and turned yet even though they are on the overbought turf. Who knows, the bulls may have enough muscle to hustle the pair to its previous high at 0.9389.