Looking for more forex setups on the majors? I spotted a nice resistance-turned-support play on USD/JPY and a simple channel setup on GBP/USD. Check it!
Did anyone catch that strong USD/JPY move a few hours ago? Me neither. Fortunately, USD/JPY is at an interesting level right now. It’s testing the 110.00 major psychological level, which not only lines up with a rising trend line support on the 1-hour chart, but also the broken falling trend line on the 4-hour time frame. Talk about a triple threat for the bears!
I’m not too excited to buy at market price though. For starters, the yen’s recent rise was due to Abe officially announcing another delay in Japan’s sales tax hike. If this turns out to be a game changer and the Fed fails to raise its rates this month, then USD/JPY could go back to its downtrend. Still, do you think it’s worth it to take a second look at a long trade?
Cable’s uptrend is something that I’ve been eyeing for a while. Thanks to recent polls showing more pro-Brexit voters, the pound finally went back to its falling channel support that has been holding since late February. Not only that, but stochastic is also sporting oversold signals.
Two concerns in buying the pair at market. First, the U.K. is about to print its manufacturing PMI, individual lending, and mortgage approvals reports. All three are expected to print weaker figures than last month! Second, the pro-Brexit sentiment might be the new trend among Britons, which, according to Forex Gump, could spell trouble for the pound in the near future.
What do you think of this setup though? Should I start placing orders or wait for a couple more reports?