Currency cross playas huddle up! I spotted hot swing and long-term trend trades on EUR/JPY and GBP/CHF that you wouldn’t want to miss. Check it!
EUR/JPY encountered resistance just below the 134.00 handle, which is right smack at a falling channel resistance on the 4-hour chart. And with stochastic flirting with the overbought territory, you can bet your pips (with proper risk management, of course) that other bears are already watching this setup.
The pair has already dropped by about a hundred pips since bouncing from the resistance, so y’all might want to take it easy on shorting this one.
You could sell at current prices and take profits at 132.50 mid-channel area if you’re one of them aggressive traders, though you could also wait for the pair to actually hit the potential support before you confirm a bias.
In any case, make sure you use wide stops on this one, aight? Yen crosses like these can see volatility like nobody’s business!
GBP/CHF is finding support at the 1.3050 level, which isn’t surprising since the area of interest has served as resistance for the pair a while back.
This time around the level lines up with a rising channel support on the daily time frame. Question is, will the bulls attack at the support zone?
Buying at current levels could get you a sweet reward-to-risk ratio especially if you aim for the previous highs near 1.3300.
But if you think that the pound is actually destined to go back to its previous range, then you could also wait for the pair to break said support levels and aim for previous support levels below 1.3000.