The USD/JPY is moving in an upward direction on a 30 minute time frame as predicted. However, the price has pierced the upward trend line twice yesterday but it is trading once again above this line. This represents the weakness for the uptrend but the bulls are still strictly in control of price. The price is trading above the 50 day (shown in green) and the 100 day (shown in yellow) moving averages which confirms the above argument.
The GBP/USD pair fell from its resistance zone on a 30 minute time frame as predicted. This resistance zone was given in our analysis yesterday. The price has formed a symmetrical triangle pattern in an uptrend and historically speaking, these patterns do break in the direction of the trend. If this pattern does play out completely we could easily see the price near the off white rectangle.
Asian markets closed mixed today on the back of the testimony by Federal Reserve Bank’s chairman Ben Bernanke. Mr. Bernanke once again delivered well prepared speech to the market which was tailored to keep the volatility in the market towards its ultra-low levels. He confirmed that the Fed policy is not a “preset course” and it is completely dependent on the incoming economic data which pushed the US indices up and drove the safe heaven down to its knees once again.