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USDJPY Daily Analysis

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USDJPY (102.88): USDJPY broke out to the upside, clearing 102.00 resistance with the price now into a six day winning streak. Any pullbacks are likely to be limited towards 102.00 which could be tested for support, paving the way for further upside to 106.00. On the 4-hour chart, price action closed with a hanging man candlestick pattern which comes at the top end of the rally and near the short-term resistance of 103.00. To the downside, a pullback should see USDJPY fall towards 102.00 – 101.60 support but a breakout above 103.00 could signal continuation.

GBPUSD Daily Analysis

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GBPUSD (1.2734): GBPUSD continued its bearish momentum after breaking down below August lows of 1.2874. The falling price channel shows the decline in the prices with the 4-hour sessions currently slowing both in momentum and the range. If the most recent 4-hour session’s doji close is anything to go by, GBPUSD could be posting a correction in the near term with 1.2800 likely to be challenged. The bias remains to the downside, but a correction to retest 1.2874 for resistance is quite likely. The bearish view changes should GBPUSD managed to reclaim 1.2874 in which case the upside momentum could see the cable fill the gap at 1.2980.

AUDUSD Daily Analysis

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AUDUSD (0.7635): The Australian dollar completed the head and shoulders pattern as prices fell to 0.7610 neckline support yesterday. However, the declines were quickly met by a strong reversal off the neckline support sending prices back higher. In the near term, the minor support at 0.7649 will now be challenged, and if the level turns to resistance, we could expect further declines, even potentially breaking out below the neckline support. However, should AUDUSD see a strong continuation with the bullish pattern above 0.7649, the head and shoulders pattern would be invalidated.