Trend alert! USD/JPY is having trouble breaking below the 106.00 psychological area, which isn’t surprising since it lines up with a rising trend line support on the 1-hour time frame. Not only that, but it’s also near the 100 and 200 SMA support lines on the chart. Will the support levels be enough to sustain the bulls’ momentum? Or will the bears step in and push for a trend line break? Keep close tabs on this one, fellas!
Here’s one for the comdoll traders out there! NZD/USD is currently lollygagging at the .7000 major pscyhological handle. What makes this setup more interesting is that the MaPs is right smack at a falling channel resistance on the 1-hour chart. Oh, and look at stochastic chillin’ like ice cream fillin’ on the overbought territory! A short trade at current levels could get you a good reward-to-risk ratio especially if you think that the Kiwi will hit new lows against the Greenback.
Remember the downtrend opportunity that we checked out earlier this week? Well, it looks like we don’t have to wait for a bigger retracement after all! EUR/JPY is currently contained by the 50% and 61.8% Fibs on the daily chart, which are near a falling trend line resistance as well as the 118.00 MaPs on the daily chart. Not only that, but stochastic is also flashing an overbought signal. Will the euro soon head towards its previous lows? Remember to keep your stops wide if you’re planning on trading this setup! Yen crosses like this one tend to be more volatile than the majors, after all.
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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.