Comdoll traders huddle up! We’re looking at hot setups on AUD/JPY and NZD/JPY’s daily charts today. Get ’em while they’re hot!
First up is a nice and simple range play on AUD/JPY. As you can see, the pair is only about 100 pips away from the 79.00 psychological handle that held as support back in September and in October.
Will 79.00 hold as support again this time? Stochastic is already flashing an oversold signal, so you can bet that forex bulls are already gearing up for a rally.
A long trade at the earliest signs of a bounce would give you a good reward-to-risk ratio especially if you aim for the range resistance near 83.00.
Just remember to use wide stops, aight? Currency crosses like these tend to see higher volatility than your average major, so make sure you leave enough room for a spike or two (or fifty)!
After shooting up to the 79.00 area, NZD/JPY has calmed down and is now trading around the 76.00 major psychological handle.
What makes the level more interesting is that it lines up with a resistance-turned-support trend line AND a previous support area on the daily time frame. Oh, and have I mentioned that it’s also near a 50% Fib retracement line AND the 200 SMA? Talk about the stars lining up!
A long trade at the 75.50 – 76.00 levels is a good idea if you think that AUD/JPY will see an uptrend over the next couple of weeks.
If you’re one of them Aussie bears, though, then you could also wait for a break below the trend line and 100 SMAs and aim for the previous lows near 72.00 or have your fingers crossed for new lows.
Whichever bias you choose to trade, make sure you’re practicing good risk management habits when you execute your trading plans!