Welcome to a fresh trading week, brothas! Let’s get you up and running with these hot trend plays on GBP/USD and USD/JPY. Check it out!
I spy with my cool, blue eyes a sweet retracement play in the making! CAD/JPY has bounced from its 85.50 lows and is now about to hit the 86.50 levels.
What makes the area more interesting is that it’s right smack at the 50% – 61.8% Fibonacci retracement levels where the pair has encountered support before. Not only that, but it also lines up with a falling trend line retest AND the 100 SMA on the 1-hour time frame!
Think the Loonie will soon extend its downtrend against the yen? Shorting near 86.50 and placing your stop just above the trend line is a good bet if you think that the resistance levels would hold and the pair would go on to make new monthly lows.
Just make sure you place wide stops, aight? After all, yen crosses like these tend to see more volatility than other currency pairs!
Remember that long-term uptrend that we spotted a couple of days back, Well, it’s game time for pound bulls out there!
Cable is lollygagging around the 1.3000, which isn’t surprising since the major psychological handle is just above the rising channel and 100 SMA support on the daily time frame. Oh, and look at stochastic chillin’ like a villain on the oversold territory!
Buying at current levels could get you a good reward-to-risk ratio especially if you place your stops just below the channel and aim for the pair’s previous highs.
If you’re not convinced that the pound is headed higher, though, then you could also wait for a bit of momentum before you jump in. Whichever strategy you choose, make sure you practice good risk management when you do take them trades!