Daily Chart Art: July 6, 2009

USD/JPY: Daily Chart

PoD Chart

Let’s take a look at the daily chart of the USD/JPY shown above… We’ve seen this pair make large swings in the past but right now, it appears to be consolidating. A descending triangle formation can be seen on the chart and a breakout could take either the northbound or the southbound direction. The stochastics are in neutral territory, which means we’ll just have to wait and see. If the pair takes the southbound route, there is potential support at 94.00, which is a psychologically significant level. The pair has already attempted to break this level twice but failed. Third time’s the charm, perhaps?

USD/CAD: 1-hour Chart

PoD Chart

Check out the range on that USDCAD hourly chart! Price action of the pair seems to be confined in a 200-pip trading range since June 22, yo! Notice how price keeps bouncing off between support at 1.1450 and the resistance at 1.650 price area. The 1.1570 region is also providing minor resistance/support for the pair as price tends to stall around this region. Will we see more side ward movement for the next few days? With stochastic indicating overbought conditions, the pair might once again fall towards 1.1570 and 1.1450 price areas again. Conversely, there’s always the possibility that the pair might break out topside. If this happens, there resistance around at 1.1700 is likely. Going on further, a strong psychological and technical resistance at the 1.1800 price level could also be found.

EUR/JPY: 4-hour Chart

PoD Chart

After watching the EURJPY trade within a range between 132.50 and 135.00, there seems to be something fishy happening right now. Price action seemed like it broke out above strong resistance at 135.00 and remained over that level for a couple of days.. before dropping like a brick and 135.00 providing no support whatsoever! However, price has been registering higher lows, so this could be an upward shift of the range. We may see support now at 133.50, a previous low area that also lines up with the .618 Fibonacci retracement level. Also, we are seeing some potential bullish divergence as price action registers higher lows and stochastic showing lower lows. Will support hold at 132.50? Or will the strong downtrend continue?

Not enough forex for ya? Check out our other sites for forex news, forex reviews, and even your own forex trading journal!