Daily Forex Chart Art – July 28, 2014

USD/JPY: 4-hour

USD/JPY 4-hour Forex Chart

USD/JPY 4-hour Forex Chart

Is that a breakout I’m seeing USD/JPY’s 4-hour forex chart? The pair has been consolidating inside a descending triangle since April this year and it appears that it finally picked a direction. Price might pull back to the triangle resistance before heading any higher though, as stochastic is moving down from the overbought zone. A retest of the 101.50 minor psychological level might take place and, if that holds as support, USD/JPY might be in for a 300-pip rally.

AUD/JPY: 4-hour

AUD/JPY 4-hour Forex Chart

AUD/JPY 4-hour Forex Chart

Looks like this triangle resistance is holdin’ like a boss! AUD/JPY appears to be having trouble sustaining its climb past the 96.00 major psychological level, as it lines up with the top of the ascending triangle on the 4-hour forex time frame. Stochastic is moving close to the oversold region but hasn’t crossed higher yet, indicating that there may be enough selling pressure to lead to a test of the triangle bottom at the 95.00 major psychological level. If that holds as support, another bounce towards the triangle resistance might happen.

AUD/USD: 4-hour

AUD/USD 4-hour Forex Chart

AUD/USD 4-hour Forex Chart

AUD/USD is also moving close to testing the bottom of the ascending triangle on its 4-hour forex time frame. Stochastic is already indicating oversold conditions and ready to cross higher, which suggests that Aussie bulls could jump in sooner or later. Price could find support at the .9375 area, which lines up with the triangle support, and make its way back to the triangle resistance around .9460. Do watch out for a potential breakout below the support area if Aussie bears refuse to give way though!

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.