It’s Friyay, y’all! It’s all about the yen today, as I bring to you forex trade opportunities on USD/JPY and EUR/JPY. Check it out!
First up is this nice and simple trend play. EUR/JPY is having trouble breaking below the 128.00 major psychological level, which isn’t surprising since it lines up nicely with a previous area of interest and a rising channel support on the 4-hour time frame.
What makes the setup even more interesting is the small bullish divergence that we’re seeing on the chart. Will it mean good things for the euro?
A long trade at the earliest signs of bullish momentum could get you a decent number of pips especially if you aim for the previous highs near 131.25.
But if you’re no fan of buying the euro, then you could also wait for a break below said support levels and play a downside breakout.
Just make sure you place wide stops when you do trade this one, will ya? Yen crosses like these can take in volatility like nobody’s business!
Breakout alert! USD/JPY is now flirting with the 109.00 major psychological handle, which is waaaay below the symmetrical triangle pattern that we’ve identified back at the start of the month.
Think the “breakout” is legit enough to warrant further losses for the Greenback? As the School of Pipsology tells us, triangle breakouts could be as wide as the height of the base of the triangle. We’re talkin’ around 800 pips in this case!
Shorting at current levels is still a good idea if you think that USD/JPY could drop back to retest 100.00. Watch out for areas of interest near 107.00 and 105.00, though.
And if you’re not convinced that the dollar will take any more losses, then you could also wait for one of them previous resistance areas to serve as support and look for the earliest signs of bullish momentum.