Intraday Forex Charts Update – Oct. 18, 2016

AUD/JPY: 1-Hour

AUD/JPY 1-Hour Forex Chart

AUD/JPY 1-Hour Forex Chart

AUD/JPY has been on a tear higher but the pair is now approach the major psychological handle of 80.00. At the same time, we’re seeing a divergence form between price and the Stochastic indicator, a potential signal that short-term bounce off of resistance may be in the cards.  If you’re still long biased on the pair, a pullback to the rising moving averages may draw in the next set of buying if there will be one.

GBP/JPY: 1-Hour

GBP/JPY 1-Hour Forex Chart

GBP/JPY 1-Hour Forex Chart

Since the Sterling flash crash, GBP/JPY made another attempt to go lower only to find strong support around the major psychological level of 125.00.  The pair is at a major short-term inflection point as it tests the 200 moving average on the 1-hour chart, a situation that could draw short-term sellers back in.  And using the Fibonacci tool, we can assume Fib players are checking this area out as well as a potential short play with the Brexit story still in play.

CHF/JPY: 1-Hour

CHF/JPY 1-Hour Forex Chart

CHF/JPY 1-Hour Forex Chart

CHF/JPY has been in consolidation mode since September, probably frustrating for sellers who’ve been on that long-term downtrend on the higher timeframes since ‘Nam (okay, maybe not that long).  It looks like we’re near the point of breakout, so this one should definitely go on a watchlist to pair up with a fundamental catalyst if we get one.  Remember the longer-term play is the downtrend, so a downside breakout may be the better opportunity, but the yen has been on a heck of a run for so long that there may be some profit takers lurking out there to give an upside break a boost.

Forex Chart Settings:

Slow Stochastic: 14, 3, 3
100 SMAs: 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.