Could this be an opportunity to hop in the USD/JPY uptrend? The pair seems to be retreating after its recent forex rally and it might find support around the rising trend line on its 1-hour time frame. Using the handy-dandy Fib tool on the latest swing low and high shows that the 61.8% Fibonacci retracement level lines up with the trend line, former resistance, and 116.50 minor psychological support. Stochastic is already on its way up though, indicating that buyers are getting stronger again and that the retracement might be a shallow one.
Remember that USD/CAD falling trend channel I showed y’all a few days back? Well, price did bounce from the bottom and made another test of resistance. The top of the channel appears to be holding like a boss for now and USD/CAD might be on its way back down to the channel support around the 1.1200 major psychological level. The pair is stalling at the middle of the channel, with stochastic moving north and suggesting a quick bounce. Another test of the channel resistance around 1.1320 might take place before price resumes its drop, but do watch out for a potential upside break if dollar bulls are strong enough!
Here’s another potential pullback play on a yen pair, as GBP/JPY looks ready to retrace to the broken resistance zone. The pair recently broke past the 184.00 major psychological handle, which is close to the 38.2% Fibonacci retracement level based on the Fibs on the 1-hour forex time frame. Stochastic is starting to climb though, which means that pound bulls are charging once more and might be ready to push for a break past those previous highs around 186.00. Make sure you review our School of Pipsology lesson on How to Combine Fibs with Support and Resistance if you plan to trade this setup!
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.