Whether you like short or long-term forex setups, I got yo back with these trend plays on USD/JPY and AUD/CAD. Get ’em while they’re hot!
Remember that short-term uptrend that we spotted earlier this week? Well, it looks like it worked out pretty well for the bulls! But will the Greenback extend its bullish run against the yen in the next couple of days?
USD/JPY is currently finding support at the 113.50 area, which lines up nicely with a rising channel AND 100 SMA support on the 1-hour time frame. What makes the setup interesting is that stochastic is also near the oversold territory.
Buying at current levels could get you a good reward-to-risk ratio especially if you aim for the previous highs above 114.00. If you think that the dollar’s rally is about to lose steam, though, then you could also wait for the pair to break below the channel and trade a downside breakout instead.
Keep close tabs on this one, brothas!
Unlike in last week’s setup, AUD/CAD is now much closer to the falling channel resistance on the daily chart. As you can see, the resistance area lines up with the .9900 major psychological handle as well as a major area of interest for the pair.
With stochastic already in overbought territory, you can bet your pips (with proper risk management, of course) that other bears are already watching this one.
Will we see more losses for the Aussie? Shorting at the earliest signs of a bounce lower is a good idea especially if you aim for the September lows below .9700. If the pair breaks higher, however, then you could also eye parity or even 1.0200 levels as possible targets.
Just make sure you place wide stops, aight? You never know when crazy volatility will hit these currency crosses!