Can you believe we’re already into the middle of the week? Get over the mid-week hump by checkin’ out these hot forex trading setups on USD/JPY and AUD/JPY. Check it!
First up is a nice and simple trend play on AUD/JPY. The pair is lollygagging around the 85.00 major psychological handle, which is right smack at a falling trend line that’s also near a 50% Fibonacci retracement AND the 100 SMA on the 1-hour chart.
Shorting at current levels could still give you a decent trade especially if you place your stops just above the trend line resistance and aim for the previous lows near 84.50.
If you’re one of them Aussie fans, though, then you could also wait for a break above the trend line and aim for the area of interest near 86.00.
Whichever bias you choose, don’t forget to keep your stops relatively wide. Currency crosses like these can see volatility like nobody’s business, didn’t ya know?
Here’s one for the longer-term traders out there! USD/JPY is about to hit the 111.50 region, which happens to line up with a mid-range support and the 100 and 200 SMAs on the daily time frame.
What makes the setup even more interesting is that stochastic is also nearing the oversold region. But will this translate to a bounce for the Greenback?
Buying at the mid-range support could give you a decent reward-to-risk ratio especially if you place your stops just below the level and aim for the previous highs near 114.50.
If you’re not sold on the dollar’s strength, though, then you could also wait for a move back to the 108.50 range support levels before you place your buy orders.
In any case, make sure you practice good risk management decisions so you won’t lose them hard-earned pips!