Ooh, looks like this retracement play on AUD/JPY is starting to come to life! After a long period of consolidation, AUD/JPY is showing signs of pulling back to an area of interest on the 4-hour forex time frame. As you can see, the 94.00 major psychological level is close to the 50% Fib and the former resistance. To top it off, the 200 SMA is right in that area too! Stochastic is indicating oversold conditions, which means that the pair is ripe for a bounce, which might last until the previous highs.
Got time for a quick scalp trade? You might like this one playin’ out on CAD/JPY’s 1-hour forex time frame. The pair just came off a test of the rising channel support and looks ready to head back to the resistance area. Stochastic is on middle ground but is moving higher, suggesting that there’s a bit of buying momentum left. CAD/JPY could still have at least 50 pips to go before reaching the top of the channel, but watch out for a selloff if the 93.00 handle holds as resistance!
Last but not least is an update on that GBP/JPY chart I showed y’all in yesterday’s Chart Art. By the looks of it, the pair is still stuck inside the pseudo-ascending triangle formation but it looks eager to make another test of resistance. Could it make a break for it this time? Stochastic is climbing, which means that pound bulls are a-chargin’ but there appears to be a nearby resistance zone around 172.50. Watch this one closely, fellas!
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.