Daily Forecast for Crosses: May 12

By IBTimes Staff Reporter | May 12 2010 12:03 AM

EURJPY Forecast

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The EURJPY had a bearish momentum yesterday after price violated the bullish channel, as you can see in my h1 chart below. The bias remains to the downside targeting 115.00 – 114.50 area especially if price break below 116.40 support area today. Immediate resistance at 118.30 area. Break above that area could lead us into no trading zone as direction would become unclear.

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GBPJPY Forecast

The GBPJPY was indecisive yesterday. Price attempted to push lower, bottomed at 135.89 but closed higher at 138.55 after new coalition administration takes charge in UK. Price still able to move below the trendline resistance so far indicating the bearish scenario remains intact and I think the bullish momentum is just a temporary short term reaction and the bearish scenario may continue especially if price able to break below 137.60 today targeting 135.70 area. On the upside, immediate resistance at 139.65 (yesterday’s high). Break above that area could be a serious threat to the bearish scenario.

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AUDUSD Forecast

The AUDUSD had a bearish momentum yesterday. On h1 chart below we can see that the bullish channel has been violated to the upside which potentially end the bullish correction especially if price able to break below 0.8880 area targeting 0.8000. Immediate resistance at 0.9000. Another movement above that area could lead us into no trading zone as direction would become unclear.

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