It’s all about the yen on today’s canvas, as we play around with forex trade opportunities on EUR/JPY and NZD/JPY. Get ’em while they’re hot!
EUR/JPY is trading around the 131.50 area, which is right around a long-term trend line that it had broken in September.
This time around a 100 SMA retest and a 38.2% Fib retracement are making it easy for the bulls to sustain a bullish momentum.
Are we looking at a break-and-retest situation here? Buying at the earliest signs of bullish momentum is a good idea if you believe that EUR/JPY will extend its uptrend to retest the 133.50 previous resistance levels.
Just make sure you place a wide stop when trading long-term time frames like these, aight?
Remember that trend line retest that we spotted a couple of days back? Well, it looks like NZD/JPY is ready for a bearish run!
Aside from finding resistance at the 100 SMA, the pair looks like it’s also bouncing from a falling trend line that hasn’t been broken since the start of the year.
What makes the setup more interesting is that stochastic is also flashing an overbought signal and it also looks like it’s ready to go down.
Shorting at current levels would give you a good reward-to-risk ratio especially if you aim for the previous lows near 72.45 and place your stops just above the trend line.