Bags are packed and ready to go? You’ll definitely want to check EUR/JPY and GBP/JPY’s charts to see if you can take a couple of pips with you for the weekend!
Resistance alert! EUR/JPY is knocking on the 121.50 zone, which lines up with a previous resistance on the 1-hour chart.
But wait, there’s more! Aside from the previous resistance, 121.50 also lines up with the 100 SMA and a falling trend line that hasn’t been broken since mid-June.
Are we looking at an extension of a downtrend over here? Shorting at current levels could get you in at a good spot if you think that the euro will make new June lows against the yen.
If you’d rather buy EUR/JPY, however, then you could wait for a possible break above the trend line before you place your orders.
Whichever bias you’re trading today, make sure you practice good risk management when you execute them trading plans!
GBP/JPY is having trouble trading below 136.00, which isn’t surprising since it lines up with a support level from back in January.
What makes the chart more interesting today is that there’s also a possible bullish divergence on the daily time frame.
Think we’re about to see the pound bounce? Buying at the earliest signs of bullish momentum would give you a good reward-to-risk ratio especially if Guppy pops back up to its 141.00 and 146.50 previous highs.
Not a fan of the pound? That’s fine, you can also bet on a downside breakout. Watch out for a strong break below 136.00, which could drag the pair down to the 134.50 and 132.00 support areas from 2016.