GBP/JPY: 1-hour
Is that a double top pattern I’m seeing on GBP/JPY’s 1-hour time frame? Let me take my groovy Ray-Bans off to have a closer look! The pair bounced a couple times off the 124.00 major psychological resistance and found a bit of support around 122.00, which appears to be the neckline of this reversal chart pattern. If price breaks below the neckline, that means the pair could still have a couple of hundred pips to drop! But with stochastic in the oversold zone, GBP/JPY could bounce from 122.00 again and climb all the way back to 124.00.
USD/JPY: 1-hour
USD/JPY seems to be moving sideways on its 1-hour time frame as the pair has bounced off support at 79.20 and found resistance at 79.75. The pair is currently sitting right on the support level, as though thinking about whether to bounce or to make a break for it. Take note that a bullish divergence has formed, after price made lower lows while stochastic made higher lows. Better check out the 9 Rules of Trading Divergences if you plan to play this setup!
NZD/USD: 1-hour
Feast your eyes on this potential NZD/USD trend play! The pair’s uptrend still seems to be intact as the rising trend line connecting the lows of the price is holding like a boss. Price just bounced from the support level and even made a bullish divergence! If the pair continues to climb, it could make its way up to the next resistance level around .7800. But if a breakdown is in the cards, the next area of interest seems to be at the .7600 major psychological support level.
Before you get carried away with all these chart patterns, remember that technical analysis is only half the story.
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.
