USD/JPY:For quite a long period, and until the 25-10-2010 session, the evolution of the pair was clearly downward. Two sessions ago, the support of 80.86 was tested.NZD/USD:For several sessions already, the pair is navigating between 0.7550 and 0.7425. In the session of 25-10-2010 the pair reached the 0.7560 USD and …
USD/JPY
Daily graph: http://www.real-forex.com/charts-daily/271010/JPY_DAILY_271010.JPG
For quite a long period, and until the 25-10-2010 session, the evolution of the pair was clearly downward. Two sessions ago, the support of 80.86 was tested. Following that little and short breach, the pair started to increase again during last session, creating an opportunity to go “Long”.
The test of the support, in addition to the new uptrend, created the increasing envelope template, indicator of future reversal, which should be confirmed by the identification of an increasing configuration on 1 H graph.
Potential trade
1 H graph: http://www.real-forex.com/charts-daily/271010/JPY_1H_271010.JPG
The required configuration should be created once the pair will cross the resistance of 81.64 on 1H graph. In such a case, entering the following transaction might be very profitable:
· “limit” order on “Long” position 10 pips above the mentioned resistance: 81.74
· “Stop Loss” on the last “Low” occurred, which is 81.18.
· “Take Profit” on the next resistance which is 81.91.
NZD/USD
Daily graph: http://www.real-forex.com/charts-daily/271010/NZD_DAILY_271010.JPG
For several sessions already, the pair is navigating between 0.7550 and 0.7425. In the session of 25-10-2010 the pair reached the 0.7560 USD and started to go down in the following session. The way the pair will behave once the support of 0.7425 reached will determine the best strategy.
If a test occurs (vain breach of the Support), going “Long” might have positive consequences.
If the support is crossed and broken downward, going “Short” after a small technical correction could be more adapted to the situation.
Keep following the evolution of the pair and act in function.
Have a profitable day!
Real-Forex team. 