USD/JPY has traveled quite a distance since finding resistance at the 118.00 area. If you’re looking for a place to take profits on your dollar shorts or enter a long dollar trade, then you should consider the 110.00 major psychological handle. Not only does it line with the 50% Fibonacci retracement, but it’s also right above an SMA on the daily chart. Oh, and check out stochastic chillin’ like a villain on the oversold territory! Buying at 110.00 could get you tons of pips especially if you think that the Greenback will go back to its previous highs against the yen. Just make sure you use wide stops, aight? You never know how much volatility this yen pair will see in the next couple of days!
If dollar-trading isn’t your thing, then this one’s for you. EUR/GBP is lollygagging at the .8650 minor psychological area, which is right smack at a previous resistance and support area. What’s more, it’s also near a mid-channel support that’s sitting just above the 100 SMA on the daily time frame. Stochastic is almost at the oversold zone, so y’all better whip up your trading plans fast before this baby starts to take off. Oh, and make sure you practice good risk management!
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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.