Intraday Forex Charts Update – August 11, 2016

USD/JPY: 1-Hour

USD/JPY: 1-Hour Forex Chart

USD/JPY: 1-Hour Forex Chart

For the breakout artists out there, better put that there 1-hour chart for USD/JPY on your watchlist since a symmetrical-ish triangle pattern appears to be taking shape. A symmetrical-ish triangle may break out in either direction, so we don’t really have a strong directional on the pair. And should a breakout occur, then the resulting rally or selloff could potentially last for around 200 pips, based on the height of the triangle’s base. In any case, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, okay?

CAD/JPY: 1-Hour

CAD/JPY: 1-Hour Forex Chart

CAD/JPY: 1-Hour Forex Chart

This one’s for the trend players out there. As you can see, the intermediate downtrend came to an end when price failed to break past support at the 77.10 handle. In fact a new uptrend seems to have started since an ascending channel pattern has recently formed. Not only that, the moving averages are also just about to cross-over into uptrend mode, which will confirm the uptrend. Breakout artists should not lose heart, though, since a downside channel breakout could still potentially occur, given that stochastic is already signalling overbought conditions. Support at the 77.10 handle seems rather strong, though.

AUD/JPY: 1-Hour

AUD/JPY: 1-Hour Forex Chart

AUD/JPY: 1-Hour Forex Chart

AUD/JPY recently smashed a well-respected falling trend line, as y’all can see. But the pair began trading sideways when it found fresh sellers at the the 78.50 minor psychological level. Finding fresh sellers at 78.50 isn’t really all that surprising since it’s a price area with very significant market interest, even on the higher time frames. Anyhow, a bullish flag pattern appears to be forming, so our main directional bias is to the upside. Looking at our technical indicators, the moving averages are now in uptrend mode, and the 100 SMA is acting as dynamic support to boot. Stochastic is about to reach overbought territory, though, which is kinda worrying. And given the significance of the 78.50 area, it may also be prudent to prepare for a possible downside move.

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.