Daily Forex Chart Art – June 16, 2015

GBP/JPY: 1-hour

GBP/JPY 1-hour Forex Chart

GBP/JPY 1-hour Forex Chart

Who’s up for a countertrend forex trade? You gotta see this ascending channel on GBP/JPY’s 1-hour time frame because price is already testing the resistance! If it holds like a boss, the pair could make its way back down to the channel support around the 190.50 minor psychological level or at least until the middle of the range around 191.50 and the SMAs. Stochastic is already indicating overbought conditions anyway, which means that buyers need to take a break and let sellers take over. If you’re thinking of shorting, just make sure you set your stops past the channel resistance or the 193.00 handle.

EUR/JPY: 1-hour

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

If you’d rather go with the flow and follow the ongoing trend, then you might be better off with this downtrend play on EUR/JPY’s 1-hour forex chart. The pair seems to be forming a short-term descending channel and is currently testing the resistance, which lines up with the 139.00 major psychological mark. At the same time, stochastic is starting to head down from the overbought zone, suggesting that a pickup in selling pressure might be seen. The 100 SMA just crossed below the 200 SMA, also confirming that a selloff is possible. If that happens, EUR/JPY could fall back to the channel support right around 137.50.

CAD/JPY: 1-hour

CAD/JPY 1-hour Forex Chart

CAD/JPY 1-hour Forex Chart

Not a fan of trends? If you’re holding out for more exciting breakout moves, then you should keep close tabs on this descending triangle chart pattern on CAD/JPY’s 1-hour forex chart. The consolidation keeps getting tighter and tighter, which means that price is bound to break out in any direction soon. Stochastic is on middle ground and barely offering any clues on which route this one might take, but the looming downward SMA crossover seems to be hinting that a move lower is likely. Either way, a breakout could lead to at least a hundred pips in gains or losses, as the chart formation is of that height.

Forex 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.