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USD/JPY: 1-hour

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

After flirting with the 115.00 handle yesterday, USD/JPY is now back around the 114.00 levels. What’s interesting about it is that the major psychological handle is right smack at a rising channel and 100 SMA support on the 1-hour time frame. Not only that, but stochastic also looks like it’s about to hit the oversold territory. Is the scrilla in for more gains against the yen? Buying at current levels could get you a sweet reward-to-risk ratio especially if the dollar does head for its January highs. Make sure you don’t choke your stop losses though, as yen pairs like these usually see more volatility than the other major currency pairs!

USD/CHF: Daily

USD/CHF Daily Forex Chart
USD/CHF Daily Forex Chart

Doji alert! Remember that swing trade setup that we spotted a couple of days back? Well, USD/CHF couldn’t break above the 1.0100 major psychological handle after all. Not surprising, really, since the level had served as a legit support in late December and early January. This time around stochastic is also flashing an overbought signal.

But before you short the pair like there’s no tomorrow, you should know that the pair is on a long-term uptrend with the .9900 – 1.0000 possible support levels lining up with a rising trend line that’s also sitting around the 100 and 200 SMAs on the daily time frame. Countertrend traders can short at current prices and bail out at the first signs of bullishness, while dollar bulls can wait around the trend line and the SMAs for possible entry opportunities. Time to bust out your trading plans, brothas!

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.