How high can the Kiwi go? It seems that the New Zealand dollar’s recent rally against the Japanese yen is about to end, as stochastic has already reached the overbought region. Aside from that, the pair is already close to the top of its range on the 4-hour time frame. If the resistance at the 83.50 minor psychological level holds, NZD/JPY might soon find its way back to the bottom of the range around 80.50.
One bottom, two bottoms! Why, that’s a classic reversal pattern right there! EUR/JPY seems to be done with its recent selloff, as the pair is currently trying to break above the neckline of the double bottom formation on its 1-hour time frame. Be careful if you plan to jump in though, as stochastic is moving lower and hinting that bears are trying to push this one down. Better wait for candlestick confirmation before going long!
Now here’s a trend play y’all might be interested in. On its 1-hour time frame, AUD/JPY has been making higher lows and higher highs, forming what appears to be a rising channel. Right now, the pair is on its way to test the bottom of the channel while stochastic is also headed for the oversold zone. Do you think this pair will bounce from the channel support?
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.