Dollar bulls huddle up! USD/JPY is in a sweet spot near the 102.50 minor psychological handle. What makes this setup sweeter is that it’s also right at a mid-channel support on the 1-hour chart. On top of that, Stochastic is almost at the oversold area. You could place a tight stop on this one if you’re planning to buy at market but you could also wait for a few bullish candlesticks if you’re not set on buying the Greenback just yet.
Here’s one for the yen bulls! CAD/JPY looks like it hit resistance above the 93.50 handle and is having a hard time finding buyers. It could head back to the 93.00 psychological handle, which is right smack at a 50% Fib retracement area. You could sell the pair and take profits at 93.00 if you believe that the Loonie will reach the level or you could also wait for candlesticks to show a possible bounce around the 38.2% and 50% Fib areas if you’re planning on buying the Loonie.
Last one up for today is a setup similar to the USD/JPY chart above. This time the pair had just broken BELOW the mid-channel support and might be headed towards the bottom of the pattern. The pound bears could have more trouble breaking below the .8080 support area since it’s also near the 200 SMA on the 1-hour time frame. Don’t take your eyes off this chart in case we see a 200 SMA test and a bounce today!
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.