Daily Forex Chart Art – July 16, 2014

GBP/JPY: 4-hour

GBP/JPY 4-hour Forex Chart

GBP/JPY 4-hour Forex Chart

Looks like the trend is still Guppy’s friend! The rising trend line on the 4-hour chart of GBP/JPY is still intact, although it appears that price dipped a tad below the support area. The 173.50 minor psychological level and 61.8% Fib has held as a floor and price looks poised to test its previous highs. At the same time, stochastic is moving higher, indicating that bulls are in control of price action at the moment. Be careful once the oscillator turns down from the overbought zone though, as this might mean that GBP/JPY could have trouble sustaining its climb.

USD/CAD: 4-hour

USD/CAD 4-hour Forex Chart

USD/CAD 4-hour Forex Chart

Check out this large correction taking place on USD/CAD’s 4-hour forex chart. The pair has been selling off aggressively recently yet it eventually found support near the 1.0650 minor psychological level. From there, price has made a strong bounce and is testing the 38.2% Fibonacci retracement level. It could make a higher pullback though, as stochastic is still pointing up and indicating that buyers are in control for now. With that, USD/CAD might be able to retreat to the 61.8% Fib and 1.0800 area, which coincides with a broken support level.

USD/JPY: 4-hour

USD/JPY 4-hour Forex Chart

USD/JPY 4-hour Forex Chart

Here’s yet another update on the USD/JPY descending triangle pattern. After making a shaky bounce off the triangle support, price is on its way to test the top of the triangle once more. Stochastic has reached the overbought zone but hasn’t shown any signs of heading lower, which means that USD/JPY still has a chance at testing the resistance near the 102.00 major psychological mark. If that holds, price could once again head south and test the triangle support. Do stay on your toes for any breakouts in either direction, as the consolidation has been getting tighter and tighter!

Chart Settings

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line

To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.