Forex Trade Ideas: GBP/USD and USD/JPY

I’m not planning on trading for the rest of the week but here are a couple of trade setups for currency warriors who are still looking at the major currencies!

Long USD/JPY

USD/JPY 1-Hour Forex Chart

USD/JPY 1-Hour Forex Chart

The first one that I’m looking at is a possible last-minute trade on USD/JPY. With Nikkei liking the recent speeches of BOJ officials and the U.S. printing positive reports, it’s no wonder the dollar bulls aren’t giving up the 102.00 major handle just yet.

Of course, it also doesn’t hurt that price is finding support at a previous range resistance and Stochastic is in the oversold area. If I were to trade this I’d probably buy at market with a stop just below the 100 SMA levels.

Long GBP/USD

GBP/USD 4-Hour Forex Chart

GBP/USD Daily Forex Chart

How about a long pound trade? Yesterday’s overwhelmingly positive UK jobs report was enough for the bulls to make new 2014 highs. In my last GBP/USD trade I was burned by a “new high” that turned out to be a fakeout. Is it a legit upside breakout this time? I’m waiting for a better entry in case Cable retraces but I’m also considering just jumping in next week if price continues to head towards 1.7000.

How about you? Which of the setups above would you rather take? Any tip would be much appreciated!

XOXO,

Huck

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  • ForExchange

    Hi Huck,

    i like the setups one by one but not altogether. I always try not to get involved in such setups when you buy USD in one pair and sell it in another pair. I mean is it now strong or weak? We have to decide it. Even if the other currency is of course JPY or the GBP which have different stories but still it looks like to win one pair but lose the other. My question is: why dont you go long of GBP/JPY? That is the conclusion of your analysis and we came to Cyclopips trade then. Please answer because I am really interested about your opinion.

    Have a nice weekend

  • whenim64

    Huck, I like the first choice better. USD/JPY has good potential to move up. I would wait until mid next week to go long. After five consecutive days of advancing, USD is likely to take a breather and re-charge its energy at 102-102.20 area. I’d wait for it to come down there and form bullish candlesticks before starting to accumulate a position. If 102 area can’t hold the price up, I’d wait for 101.50 to form some demand evidence.