I’m getting tingles from the way GBP/JPY has been flirting with the 133.00 level! It’s downright sexy! As you can see, this baby has been knocking on the door of 133.00 for a while now, and it’s finally about to meet the falling trend line. If you’re not feelin’ this setup yet, maybe you will when Stochastic hits overbought territory. It’s already almost there!
Is that all the euro bulls have to give??? The market doesn’t seem interested in taking the pair above 1.4100 at the moment, as it formed a perfect doji and turned around right at the 38.2% Fibonacci retracement level. So far, the bears appear to be behind the wheel. If this continues, they may just drive this baby back down to 1.4000.
The ladies like me because I’m a lot like the falling trend line on USD/CAD… long-term material! Haha! Kidding aside, USD/CAD has been on a downtrend for about 8 months now. If you think this trend line will continue to hold, as it has four times before, then jump aboard the bear train because we’ve got a bearish divergence in the works! On the other hand, if you’re feeling bullish and believe that USD/CAD will continue rising, you ought to consider setting a buy stop above the trend line.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.