It’s all about the yen on today’s canvas, as we revisit old setups to spot new ones on AUD/JPY and GBP/JPY. Check ’em out while they’re hot!
AUD/JPY has fallen by at least 100 pips this week, and this time the bears might be ready for a breather.
The pair might head towards the 82.00 psychological handle, which is right around a falling trend line AND the 100 and 200 SMAs on the 1-hour time frame.
Stochastic hasn’t flashed an overbought signal yet, so there’s still some room for the bulls to sqeeze in some gains before the bears step back into the game.
Think AUD/JPY will go back up to the trend line resistance? Or will it go on its merry way down? Watch your trade closely if you decide to trade a bullish bias, aight? Remember that countertrend trading isn’t for everyone!
Remember that rising channel that we were watching a couple of days back? Well, it looks like the bulls are paying attention!
GBP/JPY is having trouble breaking below the 148.00 psychological area, which isn’t surprising since it’s near a channel support that hasn’t been breached since this time around last year. Not only that, but it’s also near the 200 SMA on the chart!
The cherry on top of this sweet setup is an oversold stochastic signal.
A long trade at current levels could give you a cool reward-to-risk ratio especially if you aim for the previous highs around 153.00 and place your stops just below the channel.
If you’re not too sold on the pound, however, then you could also wait for the pair to break below the 147.50 – 148.00 support and trade a downside breakout instead.
Whichever bias you choose to trade, make sure you follow your trading plans to a T!