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EUR/JPY: 1-hour

EUR/JPY: 1-hour Forex Chart
EUR/JPY: 1-hour Forex Chart

Remember that channel play that we spotted yesterday? Well, it looks like the pair broke higher after all! Not only that, but EUR/JPY has also bounced from its 113.85 highs to retest the channel’s broken resistance around the 113.50 handle. What makes the level more interesting is that it now lines up with a 50% Fib retracement and 100 SMA on the 1-hour time frame. Will the euro confirm the breakout higher? A bounce higher from its current levels could take the pair to the 114.50 resistance back in mid-October. On the other hand, a trip back down to its falling channel could open a move back to its 112.70 lows.

CHF/JPY: 1-hour

CHF/JPY: 1-hour Forex Chart
CHF/JPY: 1-hour Forex Chart

Countertrend traders huddle up! CHF/JPY has just bounced from the 104.50 minor psychological handle, which is right smack at a mid-channel support on the 1-hour time frame. What’s more, it also looks like the 100 SMA is holding as support for the pair. The cherry on top of the bullish sundae is an oversold stochastic signal. Think the franc is about to bounce higher? Countertrend trading is not for everyone, so make sure you have a tight trading plan before you trade this setup!

GBP/JPY: 4-hour

NZD/CAD: 1-hour Forex Chart
GBP/JPY: 4-hour Forex Chart

Rounding up this set of trend setups is a possible bearish play on Guppy. GBP/JPY is currently consolidating inside a rectangle on the 4-hour time frame. As the School of Pipsology and September’s price action tell us, patterns like these can hint at continuation of an existing trend, in this case a downtrend. A short entry somewhere near the top of the rectangle and the 100 SMA is a good idea if you’re one of them pound bears. Just make sure you practice good risk management when you trade volatile pairs such as this!

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line

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.