If you’re looking to trade the yen today, then I’ve got the setups for you! Check out these neat trend trade opportunities on EUR/JPY and NZD/JPY’s forex charts!
NZD/JPY just bounced from the 76.50 area, which isn’t surprising since the level lined up with a 200 SMA and rising channel support.
Right now it looks like the pair is heading fast towards this week’s highs. But before you buy the Kiwi like there’s no tomorrow, you should know that the mid-channel line is a pretty big deal for the pair too.
You can enter a long at market and then adjust your positions as soon as the pair hits the mid-channel line if you’re one of them aggressive day traders.
But if you’re one of them countertrend traders and you’d rather bet on the pair trading inside the lower half of the channel, then you could also plan for potential short around the psychological area.
EUR/JPY is having trouble breaking above the 121.50 level, which is right smack at a falling channel resistance on the 4-hour time frame.
What makes the setup more interesting is that stochastic has hit the overbought territory. Will this lead to more losses for the euro?
Shorting at current levels could get you a good reward-to-risk ratio especially if you aim for the channel bottom or even last week’s lows.
But if you think that the euro will finally break above the channel that’s been keeping the currency on a downtrend since December last year, then y’all better be ready with your breakout strategies!