Things are about to get interesting on AUD/JPY really soon, so Aussie bears, listen up! The pair is crawling closer and closer to the 83.50 area, where it once found support. If it bounces off this level again, it could complete a head and shoulders pattern and lead to an even bigger drop. On the other hand, if the market manages to break above this level, you could get another chance to short the pair at its previous high around 84.00.
One day it’s up, the next day it’s down! CAD/JPY has been bouncing around for over three months now, zigging and zagging between 81.00 and 79.00. Want a piece of this action? You’re in luck because CAD/JPY is nearing the bottom of the range! The way I see it, there are two ways to play this. If you’re feeling bullish, look to go long as price approaches 79.00. On the other hand, if you’re feeling bearish, wait for a solid close below this level before you commit to a short position.
Rounding up our trio of comdoll crosses is NZD/JPY with this rising channel. As you can see, our bullish homies have done a pretty good job of maintaining this pair’s rally. If you think this baby will keep climbing and want to hop on the bandwagon, wait for price to approach the bottom of the channel and aim for the previous high. To play it safe, don’t act until you get confirmation from candlesticks, and always practice smart risk management!
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.