Up and at ’em, forex brothas! Let’s get you a running start for the week by checkin’ out these hot long-term trend plays on USD/JPY and AUD/JPY!
After breaking above a descending channel, USD/JPY has encountered resistance around the 114.50 area and is on its way down.
Watch out for the 112.00 major psychological handle, which not only lines up with the broken channel resistance but also a 38.2% Fib support on the daily time frame.
What makes the level even more interesting is that the 112.00 MaPs is also near the 100 and 200 SMA support while stochastic is about to hit oversold territory.
Think the Greenback will find support at the level? Buying at the earliest signs of a bounce around 112.00 is a good idea if you think that the upside breakout is legit and that USD/JPY will revisit its monthly highs.
If you’re no fan of the dollar, though, then you could also wait for the pair to clear the 112.00 handle before placing your short trades. Just make sure you make good risk management decision, aight?
Breakout alert! AUD/JPY just cleared the 86.00 handle, which lines up with a rising trend line AND the daily chart’s 200 SMA that had been solid since mid-2016.
The 84.00 – 84.50 levels is the next area of interest, so y’all could use that as potential profit targets (for short-term bears) or invalidation points (for long-term traders).
A dip below said area of interest could drag the pair back down to its 82.00 lows. You could buy at current prices or you could wait for a retest of the broken trend line if you believe that the pair would see a retracement before it extends its downtrend.
If you think that we’re seeing a fakeout, however, then you could also wait for the Aussie to go back up above the trend line and aim for the 89.00 levels.