Attention all yen traders — USD/JPY is fast approaching a critical resistance zone at the 94.00 handle! We may just be moments away from witnessing another major reversal, so keep your eyes locked on this pair. Another bounce off this area of interest could see price fall back to the 92.20 support zone. Just make sure to wait for confirmation from candlesticks before you sell this sucker!
So far, so good! The falling channel has been able to keep AUD/USD on lock down, but how long will it continue to hold? Right now, price looks like it’s on its way to the bottom of the channel, and with a bearish divergence already in the works, we have a decent argument for a long position. But be warned! Going long on AUD/USD, which has been trending down, would be a countertrend play and could be extra risky. Make sure you keep your risk in check if you decide to trade this setup!
Capping off this week’s opening trio is EUR/JPY with this sweet retracement setup! The 122.30 level held as both resistance and support in the past, so there’s a chance it might do so again… and soon! Price is already within striking zone of this level, which also happens to be just a few pips away from the 50.0% Fib. What’s more is that Stochastic is already signaling overbought conditions and showing a bearish divergence! Another selloff could lead to a drop to 119.00, but a break of the confluence zone may bring price way back up to 125.00.
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.