The EURJPY was volatile but indecisive yesterday, made a Doji on daily chart. The bias is neutral in nearest term and there are no changes in my technical outlook. Key intraday resistance remains around 111.04. A clear break above that area could trigger further bullish correction testing the trend line resistance but as long as price moves below the trend line resistance any bullish momentum now should be seen just as a corrective move. On the downside, we need a clear break and daily close below 109.45 to continue the bearish scenario testing 106.57. Aggressive intraday traders may take the advantage of the current sideways mode with long around 109.45 or short around 111.04 with tight stop loss. Overall the Japanese Yen outlook remains strong although the BOJ had intervened three times this year.
The GBPJPY was volatile but indecisive yesterday, made a Doji on daily chart. Price attempted to push higher but the trend line resistance did a good job preventing further upside pressure, keep the major bearish scenario intact. For me the trend line resistance area (around 127.00/30) is a good place for a short position due to a good risk – reward ratio, a stop loss on a clear break above the trend line resistance, with downside target at least around 124.85. A clear break above the trend line resistance could be a threat to my bearish outlook and might be the beginning of a new bullish phase. Overall the Japanese Yen outlook remains strong although the BOJ had intervened three times this year.
The AUDUSD was volatile but indecisive yesterday. The bias remains neutral in nearest term and I am still in a no trade zone. We have a potential wide range of 300 pips between 1.0600 – 1.0300 and until I see a break on either side I will stand aside for now. Overall I still prefer a bearish correction scenario after the fall from all time high, but need a clear break below the trend line support (white) to continue the bearish scenario. There were some bullish pressures earlier today in Asian session, turn my short term bias to a bullish outlook testing 1.0600 especially if price able to make a clear break above 1.0500. On the downside, immediate support is seen around 1.0425. A clear break below that area could change the short term bias back to neutral zone but could open the door for another retest of 1.0300 support area.
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