Here’s a nice and simple range trade for ya! AUD/JPY is 40 pips away from the 80.50 psychological handle, which lines up with a range resistance that hasn’t been broken since early May. Stochastic is also on the bears’ side with an almost overbought signal. Think the Aussie is about to lost pips against the yen? Read up on trading ranges if you’re planning on getting your share of pips from this 200-pip range!
CAD/JPY is nearly at the 84.50 handle, which is right smack at a mid-range resistance on the chart. What’s more, it also looks like the 100 and 200 SMAs are doing a great job at reigning in the bulls from more gains. The cherry on top of the bears’ sundae is a bearish divergence on the 4-hour time frame. A short trade at current levels could get you a nice reward-to-risk ratio especially if you place your stops just above the SMAs and the mid-range resistance. Don’t place your stops too closely though, as yen pairs like this one can attract volatility like there’s no tomorrow!
If you’re into the pound or the Aussie, then you should know that GBP/AUD could be headed for the 61.8% Fib near the 1.9150 mark. What makes this setup more interesting is that the area also lines up with a broken falling trend line from way back in November 2015. Will the pound’s losses stop at the Fib retracement level? Keep close tabs on this one, fellas!
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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.