Welcome to the first trading day of December, forex brothas! Let’s get you started with a short-term trend on USD/JPY and a mid-term range on GBP/JPY. Check them out!
Breakout alert! In case you missed it, USD/JPY just broke above a falling trend line that had been valid for most of November.
What makes the setup interesting this time around is that it’s now being supported by a rising trend line that had formed on the 1-hour time frame. Not only that, but the 100 SMA also looks like it’s about to cross above the 200 SMA!
The pair is currently lollygagging around the 112.50 handle, so y’all still have time to set up your trend plays if you believe that the Greenback is about to see an uptrend against the yen.
The 111.75 level is a pretty good spot to buy if you’re thinking of jumping in on the new trend. But if you think that we’re actually looking at a fakeout, then you might want to wait for the dollar to go back below the trend line before you aim for new lows.
Whichever strategy you choose, make sure you’re using top risk management decisions in your execution!
I spy with my cool, bedroom eyes a range resistance in play! As you can see, Guppy bears pounced at the 152.50 handle back in September. Will they continue to defend the level today?
Stochastic is chillin’ like a villain in the overbought territory, so you can bet your Star Wars: Battlefront II copy that other pound traders are already watching this one.
Shorting at current levels would get you a good reward-to-risk ratio especially if you place your stops just above the range and aim for the previous lows near 147.50.
If you’re one of them pound bulls, though, then you could also wait for the pair to breach said area of interest and execute your best breakout plays.
Good luck and good trading, fellas!