First up is a nice and simple support-turned-resistance play on USD/JPY’s 1-hour chart. The dollar is finding resistance at 102.00 just as Stochastic hit the overbought territory. Will the bears hold off the bulls today? Don’t take your eyes off of this one, brothas!
Here’s another dollar setup for ya! If you’re planning on trading it against the euro, then you should be aware that the pair is bouncing off a rising channel support on the daily time frame. Not only that, but Stochastic is also in the oversold zone. Watch out for new intraweek highs as it could lead to a leg all the way to 1.3900. On the other hand, the pair could also break below the 1.3500 handle if today’s NFP report becomes dollar bullish.
Last but definitely not the least setup for this week is this EUR/JPY Fib bounce that Forex Gump pointed out in his BOE/ECB rate statement guide. EUR/JPY is hitting support at the 61.8% Fib, which is right smack at the 100 SMA and previous resistance areas. Does this mean we’ll see a move all the way to 144.00? You could wait for more candlesticks or set buy stop orders if you’re not too sure about buying the euro or selling the yen.
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.