It’s all about the yen on today’s canvas, as we play around with forex trade opportunities on EUR/JPY and GBP/JPY. Which setup do you think can give you pips today?
Resistance alert! GBP/JPY is back at the 149.00 major psychological handle, which is a level that the bulls haven’t breached since May this year.
Think the bears will step in to force another bounce? Stochastic is currently on their side with an overbought signal, but y’all might want to wait for a couple more candlesticks to see if the bearish bounce has momentum.
The 145.50 mark is a good start for a target if you’re planning on shorting the pound. If you’re waiting for an upside breakout, though, then you might want to eye the previous resistance levels near 152.50 and 153.50.
Here’s one for my trend-trading homies out there! EUR/JPY is sporting what looks like a tweezer top on the daily time frame, which is convenient because it’s also trading around a falling trend line AND the 100 and 200 SMA resistance levels.
Shorting at the earliest signs of a bearish momentum could give you a good reward-to-risk ratio especially if you aim for the 127.25 or 125.50 previous support levels.
If shorting the yen is more your style, however, then you might want to wait until the euro breaks above the resistance area that we spotted before you make plays for the areas of interest near 131.50 and 133.00.
Whichever bias you choose to play, make sure you’re practicing good risk management when you execute them trading plans, will you?