After finding support at the 120.50 area, EUR/JPY looks set to revisit the 121.50 levels. This time around, the 100 and 200 SMAs are waiting around the psychological handle. What’s more, it also lines up with a falling channel resistance that’s been valid since late December. Think the euro is about to see more losses against the yen? Shorting around the 121.50 is a good idea if you’re one of them trend playas who want to see more downtrend. Just remember to keep your stops wide! After all, yen crosses like these – especially those that are traded on higher time frames – can see volatility like nobody’s business!
Resistance alert! AUD/USD looks like it’s gunning for the .7750 area of interest, which isn’t surprising since it has been serving as range resistance for the pair since late April 2016. Now that’s a long time! Think Aussie bulls can push the comdoll all the way to .7750? Or will the bears get triggered by the bearish divergence on the chart and work on pulling it back down to the .7450 – .7500 levels or even its previous lows around .7150? Stick around and watch this pair closely for possible downward bounce or even upside breakout action!
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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.