EURJPY Forecast

The EURJPY was volatile but indecisive yesterday, made a Doji on daily chart. The bias is neutral in nearest term. As long as stays above 104.95, price is still in a bullish phase since bounced from 100.74 and broke above the minor trend line resistance (red). However as you can see on my h4 chart below we have a H&S bearish formation which would be validated if price able to make a clear break and daily close back below 104.95 testing 102.85 area. On the upside, the head of the H&S formation is also located near 108.00 and the major trend line resistance (white). A clear break above that area would cancel the H&S bearish scenario which could be an early signal of a major bullish reversal scenario. Immediate resistance is seen around 106.17 (yesterday’s high) which is the right shoulder of the H&S formation. A clear break above that area could trigger further bullish pressure testing the head and 108.00, or at least make a new higher right shoulder.

GBPJPY  Forecast

The GBPJPY was volatile but indecisive yesterday. The bias is neutral in nearest term. The double bottom bullish scenario remains valid, but found a strong resistance at the major trend line resistance as you can see on my daily chart below. So the battle between bull and bear represents by the double bottom on the bullish side and the trend line resistance on the bearish side. As long as stays above 120.00 the bullish intraday phase since formed the double bottom at the record low should remain strong. A clear break and daily close below that area could trigger further bearish pressure testing 119.50/00 support area. Immediate resistance is seen around 120.80. A clear break above that area could trigger further bullish pressure testing 121.50 even retesting the trend line resistance, but we need a clear break and daily close above the trend line resistance to confirm the double bottom bullish reversal scenario.

AUDUSD Forecast

The AUDUSD was volatile but indecisive yesterday. The bias is neutral in nearest term but overall price is still in a bullish phase since bounced from 0.9400 and broke above the trend line resistance as you can see on my h4 chart below. We may have a wide range area between 1.0400 – 1.0110.  A clear break above 1.0400 could trigger further bullish momentum testing 1.0500 – 1.0660. On the downside, key support area is seen around 1.0110 – 1.0000. A clear break below that area could be a threat to the current bullish intraday outlook. Immediate support is seen around 1.0200. A clear break below that area could trigger further bearish pressure testing 1.0110 – 1.0000 but overall I still prefer a bullish intraday scenario at this phase.

©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.

.