Careful, Aussie bulls! AUD/JPY is having a tough time breaking past the 97.50 minor psychological barrier, as this lines up with the falling trend line forming on the pair’s 1-hour forex chart. Price also appears to have found resistance at the 50% Fibonacci retracement level, which could lead to a drop to the previous lows near the 96.50 mark. Stochastic is almost in the oversold area while the pair is still attempting to break the trend line, with a return of buying momentum likely to push AUD/JPY past the Fibs.
Ooh, could this be the start of an uptrend for EUR/JPY? The pair has broken past the neckline of what appears to be a sketchy double bottom forex chart pattern, indicating that the previous downtrend is about to be reversed. Stochastic is already indicating overbought conditions, which means that a quick pullback might take place, possibly until the formation’s neckline near the 138.00 handle. Take note that the chart pattern is roughly 200 pips in height, which suggests that the resulting rally could be around the same size.
If you think the trend is your friend, then you should be watching this uptrend play on NZD/JPY’s 4-hour forex chart. The pair has been moving inside an ascending trend channel for over a month, confirming that the uptrend is still very much intact. Price has just bounced off the bottom and is showing enough momentum to head back to the top of the range, which is around the 88.50-89.00 psychological levels. Stochastic is still moving higher anyway so Kiwi bulls have enough energy to push NZD/JPY to the channel resistance. Make sure you set your stops right if you plan to catch this move!
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.