Let’s start the day off with USD/JPY! Price has come a long way since it topped out above 96.00, but lately, buyers have been in control. In fact, they’ve managed to keep it above the 94.00 handle, which was a major resistance level in the past. Think this pair is destined to climb higher? You might want to aim for the previous high. On the other hand, if you feel that sellers will regain control of USD/JPY, it would be safer to wait for a break of 94.00 before getting short.
And just like that, AUD/USD is once again within striking zone of the major resistance level at 1.0600! It has already climbed over 300 pips with no major retracements, and Stochastic is indicating overbought conditions, so it may just be a matter of time before the bears take over. If they do push this pair back down, they might not stop until they hit the 1.0200 support zone again!
We’ve got a major confluence zone around 122.00, homies! It was a strong support level last week and it also lines up almost perfectly with the 50% Fib. Best of all, a bearish divergence is already in the works! It looks like we’ve got the green light to sell this pair, but if you still need further confirmation, you can wait for a chart pattern to form.
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis.
Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.