USD/JPY
Daily graph: http://www.real-forex.com/charts-daily/DEC2010/JPY_DAILY_011210.JPG
The pair stopped a 4 weeks uptrend after it reached, but did not cross, a resistance zone around 84.42. Later, during the last session, a bearish envelope template was created, indicator of very soon reversal – 1 or 2 sessions.
In order to catch the opportunity for a “Short” transaction, a confirmation, through the identification of a decreasing configuration on 1H graph, is required.
Potential trade
1H graph: http://www.real-forex.com/charts-daily/DEC2010/JPY_1H_011210.JPG
The required configuration should appear with the breakdown of the support at 83.42 (1H scaled graph support). After the breakdown, since the decreasing configuration will be identified, a transaction may be ordered.
– “Limit” order on “Short” position 10 pips below the mentioned support, i.e. 83.32
– “Stop Loss” order on the last high appeared: 83.79
– 1st level for a “Take Profit” on the following support: 83.19
NZD/USD
Daily graph: http://www.real-forex.com/charts-daily/DEC2010/NZD_DAILY_011210.JPG
The pair stopped a 3 weeks bearish trend after it reached, on the last session, the support of 0.7407. By looking at the daily graph on several months, we can see the pair stopped at this level several times already, for example: Beginning of September, end of July. At this time, this level was still a resistance.
If the pair is reaching today the support there are two possible outcomes:
Have a nice day!
Real-Forex team