Well, the EURJPY is in quite a situation right now! Notice that double top formation and how the pair is sitting right at its neckline? If the pair breaches that neckline, it could be in for a wild ride downwards. Also, there’s a rising trend line connecting the lows of the price and guess what? The pair is sitting right on that trend line too! A break of that trend line could send the pair falling until the resistance turned support level at the 121.50 area.
Check out the USDJPY 1-hour chart I showed you above. The pair just broke above the falling trend line, which was formed by connecting the highs of the price on the 1-hour chart. Even though this break suggests that the pair could keep heading higher, the pair has yet to surge above the nearby resistance level around the 93.60 area. The stochastics, which are in the overbought area, suggest that the buyers are already losing steam. But would the USDJPY pair still be able to go for two breaks in a row?
Next is the AUDUSD on its daily chart. As you can see, the pair is still riding on a long term uptrend that started back in March 2009. The pair, however, is having a hard time breaking above the 0.9400 resistance as of late. It could easily reach the 0.9500 psychological marker if it’s able to move past it. But if it reverses and breaks the rising trend line, it could fall all the way down to 0.9000