It’s all about the yen today, as we play around with forex setups on NZD/JPY and CHF/JPY. Check them out and see if you can end the week with positive pips!
NZD/JPY: Daily
NZD/JPY is shooting higher after finding support at the 67.25 – 67.50 zone. If you’re looking for a potential resistance, then the 69.25 area of interest is your best bet.
But what if Kiwi breaks above the level? If NZD breaks higher, then we might be looking at a double bottom pattern breakout. And if we take cues from the School of Pipsology, then the breakout could be as strong as the height of the pattern. That’s around 200 pips, yo!
NZD/JPY is still a few pips away from 69.25, so you can still plan for what you want to do if the pair does reach the potential resistance level.
You can buy at current levels and bail at the earliest signs of consolidation or bearish momentum, or you could wait for NZD/JPY to hit a resistance level and trade a potential range resistance or a double bottom breakout.
What do you think? Will NZD/JPY jump higher? Or will it go the way of the other major JPY pairs?
CHF/JPY: Daily
But wait! A peek at CHF/JPY’s MarketMilk™ profile tells us that the pair is having a strong week relative to its longer-term performance.
That means that, unless we see a pause in the current bullish run or a bit of bearish momentum, then it’s probably not a good idea to jump in with a short right now.
Will CHF/JPY hit the channel resistance? Or will the bears step in at current prices and extend the pair’s downtrend?
Watch this one closely to make sure you don’t miss an opportunity to jump on a long-term trend!
Forex Chart Settings:
Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line