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I hope you’re ready to trade the yen today, because I’ve spotted short-term forex trade opportunities on USD/JPY and CHF/JPY that you wouldn’t want to miss!

USD/JPY: 1-hour

USD/JPY 1-Hour Forex Chart
USD/JPY 1-Hour Forex Chart

Remember that USD/JPY reversal that we spotted a couple of days back? Well, it looks like dollar bears paid attention! What makes the setup interesting today is that the pair is testing the 112.25 area, which is right smack at the falling channel AND 100 SMA levels on the 1-hour time frame.

With stochastic chillin’ like a villain on the overbought territory, you can bet your pips that other bears are already watching this one.

Shorting at current levels could give you a good reward-to-risk ratio especially if you’re aiming for the previous lows near 111.75. If you’re one of them dollar bulls, though, then you can wait for the Greenback to break above said resistance levels and trade an upside breakout instead.

CHF/JPY: 1-hour

CHF/JPY 1-Hour Forex Chart
CHF/JPY 1-Hour Forex Chart

Here’s one for retracement playas out there! CHF/JPY is having trouble breaking above the 115.00 major psychological handle, which isn’t surprising since the level lines up with not only a 50% Fibonacci retracement but also an area of interest from way back in late September.

With the 100 and 200 SMAs trading just above the 115.00 MaPs and stochastic flashing an overbought signal, the path of least resistance is to short the pair until it hits its previous lows near 114.50.

If buying the yen or shorting the franc isn’t your thing, then you could wait for a break above said resistance levels and aim for a retest of the 115.50 highs from last week or even the next area of interest near 116.00.

Whichever bias you choose, make sure you practice good risk management decisions when you execute your trades!

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line