Check it out homie! It looks like GBP/JPY is finding some nice support at the intersection of the 61.8% Fibonacci retracement level and a former broken resistance level. Given how the Stochastic is moving out of the oversold territory, we may see the bulls push the pair higher again. If the pair does go up, the next major resistance will be at 126.00.
Speaking of Fibonacci retracement levels, there’s a nice Fib play on NZD/USD’s 1-hour chart. As you can see, the pair’s rally has just stalled, suggesting that we could see a pullback very soon. This is confirmed by the Stochastic, as it shows that conditions are severely overdone. If price does fall, it could go as low as .8125, as that level coincides nicely with a former broken resistance level. Remember, whenever price passes through a resistance level, that level usually becomes support.
Is USD/JPY about to head even lower? Judging from how the daily chart is showing “lower highs” and how the pair convincingly closed below the major support at 78.00 yesterday, it seems that the bears have full control over the pair. If you’re part of the bear camp, then consider yourself lucky, as the next major support level won’t be until 76.00.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.
Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.