First up is a nice and simple uptrend play on AUD/JPY. The pair is currently finding support at the 86.00 major psychological handle, which is right smack at a rising channel support on the 4-hour time frame. What makes the setup more interesting is that there’s also a potential divergence on the chart. A long trade at current levels could get you a sweet reward-to-risk ratio especially if you aim for the top of the channel around 88.50. Just make sure to put wide stop losses, aight? Comdoll crosses like these are usually more volatile than the majors, yo!
Countertrend traders huddle up! CAD/JPY has just bounced from the 85.00 psychological handle and it looks like it’s gunning for the 86.00 – 86.50 area of interest. Buying at current levels could still get you a pip or two (or a hundred) from the setup if you think that the Loonie will hit the channel resistance area before resuming its downtrend. But if you’re one of them conservative traders, then you could also wait for CAD/JPY to actually hit the channel resistance/SMA/area of interest near 86.00 before placing short trades.
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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.