Gotta bounce, yo! USD/JPY just hit the bottom of the symmetrical triangle formation and rebounded. Stochastic is pointing upwards and moving out of the oversold area, which means that the pair could have enough gas to head all the way up north. Aside from that, there’s a neat little bullish divergence since the oscillator made lower lows while the price made higher lows. It’s not too late to jump in on this bounce, but I suggest you check out today’s set of economic data first. There’s always the chance that the red flags on today’s agenda could trigger a breakout to the downside and it wouldn’t hurt to be extra careful!
Aha! It looks like the dollar is also pulling off its R. Kelly move on the Swissy too! Just look at yesterday’s candle closing as a bullish marubozu. Nice, eh? Well, if there are enough bulls around, the pair may just bounce-bounce, bounce-bounce on the trend line and get enough air to make it all the way up to its most recent high around .9740. However, if there aren’t enough bulls, we may just chill at the trend line. Who knows, it may even slip below support.
Lastly, let’s zoom out on EUR/USD and get dibs on the weekly time frame. I know some of you have been rooting for the euro like teenage girls in mah boy Justin Bieber’s concert, but you may want to be careful because EUR/USD could meet resistance at 1.4000. If there isn’t enough euro lovin’ to go around, we may see the pair retreat from resistance at the falling trend line. This doesn’t mean that its all downhill for the euro though. Watch out for a strong break above 1.4000 as this could be a signal that EUR/USD is on its way up to 1.5000!