The EURJPY attempted to push higher yesterday, slipped above 116.00 but whipsawed to the downside and hit 114.67 earlier today in Asian session on broad Yen strength. The bias is bearish in nearest term testing 114.00 but I think the best place for short position remains around 116.00 due to a good risk – reward ratio. On h4 chart below we can see price still moves inside a bullish channel after the failure to make a clear break below 114.00 so aggressive intraday traders can also long around 114.00 with the same reason, a good risk – reward ratio. Price has been moving in a sideways mode in the last three weeks between 116.00 – 114.00 and need a clear break on either side to see clearer direction.
The GBPJPY was corrected lower yesterday, slipped below 132.97 but found a support at the violated trend line resistance (now support) as you can see on my h4 chart below. The bias is neutral in nearest term but I still prefer a bullish scenario at this phase after the violation to the trend line resistance especially if price able to make a clear break above 133.78 still targeting 134.50 in nearest term before testing 136.00. Immediate support at 132.61 (yesterday’s low). A clear break below that area would change my intraday bias to bearish testing 132.00 – 131.50 support area but would activate my wait and see mode as direction would become unclear.
The AUDUSD continued its bullish momentum yesterday and now testing the trend line resistance as you can see on my daily chart below. The bias is bullish in nearest term but I think now is the best time for a short position as the bearish outlook since fall from the fall time high 1.1010 remains intact and we have the best risk – reward ratio now with stop loss on a clear break above 1.0700 and downside target around 1.0388. Aggressive intraday traders can still turn on bullish mode but watch out for a strong resistance around the trend line resistance and 1.0680 – 1.0700 area. I think we need a clear break at least above 1.0770 to cancel the bearish scenario and activate my bullish mode. Immediate support at 1.0600 – 1.0550. A clear break below that area would change the intraday bias to bearish and keep the bearish scenario since the fall from 1.1010 remains strong at least testing 1.0388.
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