After bouncing from the 119.00 area, EUR/JPY has gone back up to test the 120.00 major psychological handle. What’s interesting about the level is that it lines up with not only the falling trend line resistance, but also the 50% Fib on the 1-hour chart. Will the euro go back down against the yen? A short trade at current levels could yield a decent amount of pips. Just make sure you leave enough room for yen-related volatility!
Support alert! CAD/JPY is nearly at the 82.50 psychological level, which hasn’t been broken as a support since April this year. This time around stochastic is also sporting a divergence. Will the support level hold for another day? A long trade at the support area could get you a good reward-to-risk ratio especially if you place your stops just below the range support. Watch out for the mid-range resistance though, as it’s also near the 100 and 200 SMAs and could limit your reward-to-risk ratio computations.
If you’re looking for long-term trades, then this one is for you. GBP/CAD just popped up a long-legged doji on the daily chart! Not only that, but the doji was right smack in the 1.8200 levels, which has been an area of interest since last year. The cherry on top of the bullish sundae is an oversold stochastic signal. Think the pound is about to gain pips on the Loonie?
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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.