Looks like USD/JPY is stubbornly refusing to break out! Just when most traders thought that the pair was breaching the bottom of the descending triangle, it popped right back up and started to make its way to the top. If the triangle resistance around the 102.00 major psychological resistance holds, USD/JPY could make another move to the triangle support. Stochastic is just moving out of the oversold region though, which means that buying pressure is mounting. Think this could lead to an upside break?
If you like going with the flow, then you might be more interested in this rising channel setup on AUD/JPY’s daily forex time frame. The pair is currently finding support around the middle of the channel, suggesting that another rally might be in the cards pretty soon. At the same time, a bullish divergence has formed when stochastic made lower lows while price made higher lows. Make sure you check if this setup meets the 9 Rules for Trading Divergences first if you plan to jump in!
Y’all didn’t think I’d miss out on this neat little break-and-retest setup, did you? On its 4-hour forex time frame, NZD/JPY is showing signs of a pullback before resuming its drop. Price looks ready to retrace to the former support at the 87.50 minor psychological level, which is in line with the 50% Fib. Stochastic hasn’t quite crossed down from the overbought zone yet, which means that buyers are still pretty strong. The 61.8% Fib and SMAs could act as lines in the sand for any rallies though.
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.