Looking to ride EUR/JPY’s rallies but unable to catch the speeding train? You might need to be on the lookout for shallow retracements, my friend! The pair is starting to retreat from its recent rallies again, which means that another pullback could be in the cards. The 38.2% Fib might be the next support zone, as the bullish divergence is suggesting that euro bulls are ready to charge. Be alert for a possible bounce at the nearby 141.00 major psychological level as well!
Heads up! AUD/JPY is sitting right at the top of the falling channel on its 4-hour time frame, with Aussie bulls and bears trying to battle it out. Stochastic is indicating overbought conditions, which means that the odds are in the bears’ favor. A selloff could take the pair back to the bottom of the channel, right around the 91.50 minor psychological support. Make sure you set your stops right to avoid a fakeout though!
If you’re a fan of combining Fibs with inflection points, then this setup is just for you! GBP/JPY has pulled back to its previous week high, with a bullish divergence currently in play. This area seems to be acting as support already, but there could still be a chance for the pair to test the nearby 38.2% Fibonacci retracement level. A bounce could take the pair up to its intraweek high, which is right smack at the 170.00 major psychological mark.
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.