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USD/JPY: 1-hour

USD/JPY 1-Hour Forex Chart
USD/JPY 1-Hour Forex Chart

First up is a nice and simple retracement play on USD/JPY. The pair has just bounced from the 116.50 psychological area, which is right smack at a 50% Fibonacci retracement. Not only that, but it’s also near a 100 SMA support on the 1-hour time frame! Buying at current levels could still get you serious pips especially if you think that the Greenback would reach new highs against the yen. Just make sure you practice good risk management, aight?

GBP/JPY: 1-hour

GBP/JPY: 1-Hour Forex Chart
GBP/JPY: 1-Hour Forex Chart

Here’s one for currency cross traders out there! GBP/JPY is finding trouble breaking below the 145.00 mark, which isn’t surprising since it also lines up with a rising channel support that hasn’t been broken since the start of the month. Stop losses just below the channel support would give you a good reward-to-risk ratio especially if you aim for the previous highs near 148.00. Don’t choke your stops too much though, as yen crosses like these tend to see more volatility than your average dollar pair!

USD/CAD: 4-hour

USD/CAD 4-hour Forex Chart
USD/CAD 4-hour Forex Chart

If you’re not into trading the yen, then you might want to check out this downtrend play on the 4-hour time frame. USD/CAD is finding good resistance at the 1.3400 major psychological handle, which is right at the channel’s resistance on the 4-hour time frame. What makes the setup more interesting is that there’s also a bearish divergence on the chart and that the 100 SMA has also just crossed below the 200 SMA. Shorting at current levels is a good idea if you believe that Loonie bulls will triumph over dollar bulls over the next couple of days. If you’re one of them dollar bulls though, then you can also consider waiting for a break above said resistance levels before placing any buy orders.

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.