Retracement alert! USD/JPY is having trouble getting past the 102.50 minor psychological handle, which is right below the 100 and 200 SMAs on the 1-hour time frame. Not only that, but it’s also near a falling trend line that’s been holding since the start of the month. The cherry on top of this setup sundae is an overbought stochastic signal. Think the dollar is about to lose pips against the yen?
Here’s an easy peasy one for the trend traders out there! USD/CHF is currently knocking on the .9800 major psychological handle, which is right smack at a falling channel resistance on the 4-hour chart. What makes this setup more interesting is that stochastic is also in the overbought region. A short trade at current levels could yield you a decent reward-to-risk ratio especially if you aim for the channel’s lows. Of course, you could also wait for a break above the setup if you’re one of them dollar bulls.
This one should look familiar. Much like in the USD/JPY setup above, EUR/JPY is also sporting a possible retracement opportunity. The pair is lollygagging at the 113.50 area, which is just below where the 38.2% Fib, falling trend line, and 100 SMA are. Oh, and check out that overbought stochastic signal! Shorting at current levels could make for a good trade if you think that the euro will head for new lows against the yen. Be careful in trading yen pairs like these though. Yen crosses are usually more volatile than the majors, after all.
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