Forex Education for Beginners from Autochartist shows how GBP/JPY today completed the Triangle chart pattern identified by Autochartist on the 4-hour charts. The overall Quality of this chart pattern is rated at the 7 bar level as a result of the low Initial Trend (measured at the 2 bar level) and substantial Uniformity and Clarity (both rated at the 8 bar level). The completion of this chart pattern continues the prevailing downtrend that can be seen on the weekly GBP/JPY charts. The top of this Triangle (point A on the chart below) formed when the pair reversed down from the resistance area lying at the intersection of the resistance level 126.00 (which had previously reversed the pair down in the June of this year) and the 50% Fibonacci Retracement of the preceding downward price impulse from March. The pair is expected to fall further toward the Forecast Price 124.09.
The FTSE 100 soared on Thursday, breaking through the resistance line of a triangle chart pattern on the 1440-minute chart and setting up the index for a rally into target price at 6095.00. The strong rally also reaffirms the new main bottom at 5757.60. With the trend decisively higher, a move through that price will turn the main trend to down.
Upside momentum must continue to increase along with rising volume to assure that investors are still buying. Overbought conditions can be overcome if investors continue to be willing to buy strength. As long as there is a bid in the market, look for the rally to continue. If buying dries up and investors pull their bids then look for the start of a near-term correction.
Besides the breakout through the resistance line of the triangle, the FTSE also took out the August 14 top at 5876.20 in after-market trading following an announcement by the U.S. Federal Reserve to provide additional stimulus to the economy. If the momentum generated by that action carries over into the regular trading session, then look for the FTSE to make a run for the high of the year at 5989.10 before mounting a challenge of 6095.00.
|Forex Trading for today 13 September 2012 page created by Nils Marx|