FNP Squawk Box (27th June 2011)

USD/JPY
Tension, tension, tension. If you look under the Daily chart, you can see much of a squeezing is happening. Reality vs Market Pushers. Lower high is created but the support at 79.75 (1995 April's Low) still holds strong. There are quite a support pushing at this support line, probably government intervention but anything can happen. No one can really dictates FX market and with Japan still suffering from the disaster, let's see what will happen. For me, if price action can break below this strong historical support and create a lower high, I am going in for short.

GBP/JPY
The weakness of GBP against JPY is no mystery with Japan's economy in a turmoil. What you can see happening under GBP/JPY Daily Chart, recently price action looks like it is in a Bull Flag formation with Lower Highs and Lower Lows. Historical record low at 129.32 (1995 April's Low). Honestly, I am holding a short position on this pair but if anything tells me that price action will change its course, I will not hesitate to make an exit. I am looking for price to continue its current course towards 125.50 area, where my target lays.

EUR/USD
Under the Dail chart, as of recent, price action is showing it is in a squeezing mode with Lower Highs and Higher Lows. If price do break out lower from the triangle, please do not rush in to short this pair, I would suggest be patient. Let is move as it wish, wait for a Lower High to join in the fun. With talks and reports for billionaire investors looking for Euro to break up or loosing confidence in it. I would say, news will always be news. It is not good or bad news. Look at the charts, trust the charts and go with the charts.

USD/AUD
This commodity currency pair, I am still looking forward for it to touch 1.0200 area. When will it touch? Previously, I was looking at end of June or early July but anything can happen in the open market. Currently, there is an interim strong support at 1.0450 area. If price action can break this support line and create a lower high, probably it can go down at touch 1.0200 area. Now it is still early to tell but current price action looks like it is possible.

Relax and stay cool everyone. Trade safely and remember, do no rush, not making is always better than losing.