Welcome to the last forex trading week of November, brothas! Hit the ground running with these hot trend and range plays on EUR/JPY and GBP/JPY!
Guppy seems to be having trouble rising above the 148.50 handle, which isn’t surprising since the level is right smack at a falling channel resistance on the 1-hour time frame.
With stochastic just bouncing from overbought territory, you can bet your pips that other bears are already watching this short play. Watch out for the 100 and 200 SMAs around the 148.00 levels, though, as they could serve as resistance-turned-support for the pair.
Shorting at current levels could still give you a decent reward-to-risk ratio especially if you think GBP/JPY would make new November lows this week.
If you’re one of them pound bulls, though, then you could also wait for the pair to clear the 149.30ish resistance and then trade a possible upside breakout.
Whichever play you make, make sure you make good risk management decisions when you execute your trades, will ya?
Trend trading not your thing? Here’s a range play for ya! EUR/JPY is lollygagging around the 133.00 major psychological handle, which is also right around a mid-range resistance on the 4-hour time frame.
What makes the setup even more interesting is that stochastic has also just hit overbought territory. Think this will mean losses for the euro against the yen?
Shorting at current levels could give you a decent trade especially if you aim for the previous lows near 131.50 and place your stops just above the 133.00 area.
If we don’t see downside momentum over the next couple of hours, however, then y’all might want to consider going long instead. In that case, going long and placing your stops below the 133.00 handle would still present a good R:R.
Just don’t keep your stops too tight, aight? Currency crosses like these tend to be more volatile than the majors, after all!