USD/JPY has bounced back from the 115.50 area and looks like it’s headed fast for the 114.00 levels. What makes the psychological area interesting is that it lines up with a falling channel resistance that was broken just last week. This time around, it’s also near a rising trend line as well as the 100 and 200 SMAs on the 1-hour time frame. Oh, and check out stochastic that’s almost in the oversold territory!
Here’s another trend play for ya! GBP/NZD is lollygagging at the 1.7250 – 1.7300 area, which isn’t surprising since it’s also near a rising channel support that hasn’t been broken since mid-January. Will the channel and the 200 SMA support be enough to keep the bears in check? Buying at current levels is a good idea especially if you think that the pound will go back to its previous highs. Just make sure you place a wide enough stop, aight? Currency crosses like these tend to see more volatility than the majors!
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