It’s Fri-yay, y’all! Get your last-minute pips with a retracement on EUR/JPY and a triangle play on NZD/JPY. Check it, forex brothas!
EUR/JPY is about 300 pips from its lows near 129.50. Before you cry “reversal!” though, you should know that the pair is lollygagging at a potential pullback area.
I’m talkin’ about a support-turned-resistance situation, yo! Not only is 132.50 near a 38.2% Fib retracement, but it’s also right around the channel support that it broke back in February. Oh, and look at the 100 SMA looming over the 200 SMA!
Euro bears could get in on a sweet level if EUR/JPY ends up finding resistance at the previous support area and mark the beginning of a bearish run.
But if the pair breaks above the SMAs and gets back inside the rising channel, then we could be looking at a retest of the 2018 highs near 136.50.
Whichever bias you choose to trade, make sure you practice good risk management when you execute your trading plans!
We’ve been tracking NZD/JPY’s triangle on the daily time frame for a few days now. This time we’re looking at a possible resistance near the 79.50 – 80.00 mark.
Not only is the area near the 200 SMA, but the major psychological handle is also much closer to the falling trend line resistance that we’ve been looking at. The cherry on top of this sweet setup is an overbought stochastic signal.
Will Kiwi bears soon step in? Or will it literally hit the trend line before we see any bearish (or bullish breakout) pressure?
Watch this one closely, homies!