CHF/JPY moved with sufficient and convincing bullish momentum before hesitating when it approached the 128.90 handle, a price area of significant market interest. In the process, it consolidated into a pretty obvious bullish pennant. If the bullish pennant is validated, and price pushes past the 128.90 handle, then the pair could go higher for about 150 pips since that is the height of the pennant and and its pole. The moving averages are already in uptrend mode, which is good, but stochastic is moving lower towards the oversold area, which is bad since it may mean that forex traders bearish on the pair may not be exhausted yet.
Reversal alert! A potential double top has formed on the 1-hour chart for EUR/JPY. Conservative forex traders should wait for the neckline at the 137.10 handle to be broken before positioning-in. Aggressive forex traders, on the other hand, should make sure that resistance at 138.70 holds before even thinking out entering. The forex chart pattern’s volatility from the tops to the neckline is about 160 pips, so if the neckline is broken, and a valid double top does form, then there’s a good chance that price would have enough momentum to go down for the same amount.
Are you looking for a simple consolidation play? If yes, then look no more since AUD/JPY has been respecting a trading range between the 92.00 and 90.00 major psychological levels. The basic way to play a trading range is to either look for resistance at the top of the range or look for support at the bottom of the range. We’re a bit lucky since price is currently consolidating near the bottom of the range. Also, stochastic is already pointing up and moving away from oversold territory, so forex traders bullish on the pair may be in control already. The long-term trend is down, though, and the moving averages just crossed-over into downtrend mode, so a downside breakout is also a possibility. As usual, make sure to practice proper risk management should you find a trade based on this or any of the other charts.
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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.AUD/CAD 1-hour Forex Chart