Who’s in the mood to trade the yen today? I hope you are, because these short-term forex setups on AUD/JPY and CHF/JPY are too good to miss!
Retracement alert! After popping up to the 87.00 area earlier this week, AUD/JPY has gone back down to test the 86.00 levels.What makes the pullback interesting is that the pair is now consolidating at a broken channel resistance, which also happens to line up with the 100 SMA on the 1-hour time frame.
Before you unleash your buy orders for the Aussie, though, you should also note that AUD/JPY is having trouble actually breaking above the 100 SMA while it’s consolidating.
What’s more, stochastic is also about to hit the overbought territory!
A long trade at the earliest sign of bullish momentum is a good idea if you think that the uptrend will be your friend. But if you’re not one of them Aussie fans, then you could also trade a downside break and look for targets somewhere in the broken channel levels.
I spy with my cool, blue eyes a potential breakout in the making! CHF/JPY just found support at a rising trend line, which is also right smack at the 100 SMA on the 1-hour time frame.
117.70 is the area to watch, as it has been serving as resistance since last week. In this case, it looks like a resistance in an ascending triangle.
A break above said resistance level could bring the pair back up to the 118.80 area of interest. But if the bears manage to defend the resistance level for another day, then look for a possible trip back to the rising trend line.
Finally, remember that triangles like these don’t always result in upside breaks. In any case, make sure y’all have your breakout strategies ready in case CHF/JPY finally pops out of its triangle!