I’m servin’ up a set of break-and-retest situations on EUR/JPY and NZD/JPY today. Check ’em while they’re fresh!
After that sharp dive on EUR/JPY, it looks like the pair is pulling up for some air and could be due for a retest of the broken support around the 129.00 major psychological mark.
Stochastic is still moving up anyway, which suggests that sellers are taking it easy and letting buyers have the upper hand. However, the 100 SMA is below the longer-term 200 SMA to indicate that the selloff is likely to resume at some point.
The 61.8% Fibonacci retracement level is closest to the area of interest, but a shallow correction to the lower Fibs or even just the current 38.2% level might be enough to keep gains in check.
Just make sure you manage your risk well if you’re trading this one!
If the euro might be a tad too fickle for you to trade these days, you might like this pullback setup on NZD/JPY better. This pair also busted through a strong support area recently and is currently making a retest.
Price has pulled up to the 50% retracement level, which is right smack within the area of interest and in line with the 100 SMA dynamic inflection point. This moving average is also below the longer-term 200 SMA to signal that the path of least resistance is to the downside.
Stochastic is already dipping into overbought territory to show that buyers are tired and that sellers might take over soon, possibly bringing the pair back down to the swing low.
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?