Partner Center Find a Broker

USD/JPY: 1-hour

USD/JPY 1-hour Forex Chart
USD/JPY 1-hour Forex Chart

Remember that trend play that we checked out last week? Well, it looks like it’s playing out after all! USD/JPY just bounced from the 113.00 major psychological handle, which is right smack at a 200 SMA and trend line support on the 1-hour time frame. What makes the setup more interesting is that a bullish divergence is forming on the chart. Is the Greenback in for more gains against the yen? A long trade at current levels could get you a good reward-to-risk ratio especially if you place your stops just below the previous low. Don’t choke your stops too much though, as yen pairs like these tend to see more volatility than the other pairs!

USD/CAD: 1-hour

USD/CAD 1-hour Forex Chart
USD/CAD 1-hour Forex Chart

After falling down to 1.3250, USD/CAD is heading for the 1.3400 area. As you can see, the level has been an area of interest for the pair since mid-November. The 1.3380 zone is the level to watch this time around since it lines up with the mid-channel resistance and is just below the 100 SMA on the 1-hour chart. If you’d like a more conservative entry though, then you can also wait for the pair to hit the 1.3400 – 1.3450 zone before placing any short orders.

EUR/JPY: Daily

EUR/JPY Daily Forex Chart
EUR/JPY Daily Forex Chart

Last one up for this batch of charts is an easy peasy trend play on EUR/JPY’s daily time frame. The pair is having trouble moving past the 121.00 psychological handle, which isn’t surprising since it’s also near a 50% Fibonacci retracement, a 200 SMA retest, and a retest of a falling trend line that hasn’t been broken since March this year. Will the bears attack at current levels? Shorting at market prices could still get you a decent reward-to-risk ratio especially if you aim for the previous lows. Just make sure to practice good risk management, aight? As mentioned above, yen pairs like these can show volatility like nobody’s business.

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.