Can you believe we’re into the middle of the week? Get over the mid-week hump by checkin’ out these hot trend and retracement plays on USD/JPY and GBP/CHF. Get ’em while they’re hot!
USD/JPY looks like it’s finding support around the 108.75 level, which lines up with a 38.2% Fibonacci retracement AND a previous support level on the daily time frame. Stochastic chillin’ in the oversold area, so it’s possible that other bulls already have their eyes on this one.
Buying at current levels is a good idea if you believe that the Greenback is about to hit its previous highs above 110.00.
If you’re one of them dollar bears, however, then you could also sell the pair once it breaks below the Fib levels and aim for its previous lows near 105.00.
Whichever bias you choose to trade, make sure you manage your risk well when executing your trades!
Here’s an easy peasy one for ya! GBP/CHF is finding buyers at the 1.3150 MiPs, which is right smack at a rising channel AND 200 SMA support o the daily time frame.
You could get a pretty good reward-to-risk ratio if you buy at current levels and place your stops just below the channel and SMA. If the pound ends up breaking below the channel, however, then you could also whip out your breakout plays and trade a downside breakout instead.
Keep in mind that currency crosses like these tend to see higher volatility than the average currency pair, so y’all make sure you don’t tighten your stops excessively, aight?