Up and at ’em forex junkies! Today we’re lookin’ at some fresh, short-term uptrend plays on the yen. Will you trade USD/JPY’s retracement or AUD/JPY’s channel?
Somebody holler at Huck because this is too good to miss! USD/JPY is about to hit the 113.20 area, which is right smack at a 50% Fib retracement on the 1-hour time frame.
What makes the setup more interesting is that it lines up with a resistance that had held from late September till last week. In addition, a rising trend line has popped up around the 100 SMA support. Oh, and look at stochastic chillin’ like a villain on the oversold territory!
Buying around the Fib retracement is a good idea if you think that the Greenback will continue to make pips rain for the bulls. Just make sure you place your stops well below the trend line and the previous resistance so y’all can be sure you’re not buying into a reversal!
Can’t wait to sell the yen but don’t want to touch the scrilla? Here’s one for ya! AUD/JPY is trading on what looks like a rising channel on the 1-hour time frame.
The stars (or in this case technical indicators) are lining up with the 100 SMA hanging around the 100 SMA support just as stochastic is ready to leave the oversold region.
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 previous highs near 89.25.
Just make sure you practice good risk management in your decisions, aight? Currency crosses like these can take on volatility like nobody’s business!