Let’s start with a simple triangle setup on USD/JPY! As you can see on the 1-hour chart, the pair’s gains are limited by a falling trend line, while the 99.75 mark serves as this week’s support level. Will these forces lead to a triangle breakout some time today? Remember that descending triangles don’t always break to the downside, so a break below 99.75 is not a done deal. Watch out for possible breakout in either direction!
Here’s one for the range traders out there! EUR/JPY is about to hit the 114.00 major psychological level, which is right smack at a range resistance that hasn’t been broken since the start of the month. Will we see another bounce today? Or will the bulls finally gain enough momentum for an upside break? Read up on trading ranges if you haven’t done it yet!
Breakout alert! GBP/JPY has just broken above a falling trend line that had been valid since late July. What’s more, the pair has already RETESTED the trend line and the 200 SMA, and hinted at a potential resistance-turned-support scenario. Buying at current levels could get you a sweet trade if you think that the tides are turning for Guppy. On the other hand, you could also wait for the pair to return below said resistance levels and short the pair if you believe that we’re just looking at a fakeout.
Forex Chart Settings:
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.