GBP/JPY broke below a rising trend line that’s been valid since late February and is now finding support at the 160.00 major psychological level. Does this mean that the selloff has stopped for now? The 162.00 area is a good area for a potential pullback, as it’s near a 50% Fib, 100 and 200 SMAs, and the broken trend line. Gotta make sure you keep your stops loose though, as yen crosses like this one tend to be more volatile than the majors.
Comdoll traders huddle up! NZD/USD is showing some interesting reversal candlesticks at the .6600 major psychological area, which is right smack at a rising channel support on the 4-hour time frame. Not only that, but Stochastic is also on the bulls’ side with an oversold Stochastic signal. A long trade at current levels could give you a good reward-to-risk ratio, especially if you aim for the channel resistance. Of course, you could also wait for a break below the support levels if you think that the Kiwi still has room for losses against the Greenback.
Breakout alert! USD/JPY is lollygagging on a tight symmetrical triangle on the 4-hour chart. From what I hear from Forex Gump and Pip Diddy, we might be in for a few volatility spikes this week. If you’ve read the School of Pipsology, then you’ll know that triangles like these can break out in either direction. Time to break out your trading plans and prepare for different scenarios for this pair!
Forex Chart Settings:
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.