As you can see above, AUD/JPY has been confined to a rising channel for most of November. This time around the pair has bounced from another channel resistance retest, and is heading for potential retracement areas. The mid-channel line around the 83.00 major psychological handle is a pretty good idea if you’re only expecting shallow retracements. If you’re a bit more conservative though, then you can also place your buy orders around the 82.00 handle, which is nearer to the channel support as well as the 100 and 200 SMAs on the 1-hour chart.
EUR/JPY is chillin’ at the 118.50 area, which is right smack at a 50% Fibonacci retracement and the 200 SMA on the daily chart. What makes the setup more interesting is that the potential retracement level is already above a falling trend line resistance that had held since November last year. Is EUR/JPY headed back to its previous lows? Or did the upside breakout herald the start of an uptrend for the euro? Selling at the first signs of bearish momentum is a good idea if you think that the euro will go back to its Q3 2016 lows. If you’re one of them euro bulls though, then you might want to wait until the pair clears the 200 SMA mark before placing your buy orders.
Last one up for this batch of charts is an easy peasy trend play on Guppy’s daily time frame. The pair is about to hit the 140.00 major psychological handle, which is also right smack at a 200 SMA retest and a falling trend line resistance that hasn’t been broken since November last year. On top of that, stochastic is chillin’ like a villain in the overbought territory. Will the pound head lower from the 140.00 MaPs? Or will it see an upside break much like the one we saw on EUR/JPY?
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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.