The EURJPY slipped below 109.20 support area yesterday but whipsawed to the upside, topped at 110.42, closed at 110.17 and traded lower earlier today in Asian session around 109.90 at the time I wrote this comment. Overall we are still in bearish outlook after violation to the bullish channel but price still trapped in range area between 110.70 – 109.20. We need a consistent move below 109.20 to continue the bearish pressure testing 108.07 – 107.30 area. On the upside, break above 110.70 could be a serious threat to the bearish outlook.
The GBPJPY didn’t make significant movement yesterday. I found a bigger descending triangle on h1 chart below indicating potential bearish scenario especially if price break below the triangle and 133.03 testing 132.00 area. Immediate resistance at 133.93 (yesterday’s high). Break above that area could trigger further upside recovery testing 134.80 but the major scenario remains bearish as long as price move inside the bearish channel.
The AUDUSD had a bullish momentum yesterday, topped at 0.9079, closed at 0.9051 and now struggling around 0.9040 key level. We need a consistent move above 0.9040 to continue the bullish scenario testing 0.9145. Another movement below 0.9040 could diminish the bullish outlook re-testing 0.8858 area. Although technically this pair remains bullish, the risk aversion sentiment which is now seems to control the market could be a serious threat to the bullish outlook as investors usually tend to hold Dollar for safety during increasing pessimism on global recovery.
©2010 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.