Partner Center Find a Broker

Wassup, wasssup, wassup! Whether you like trading the majors or you’re more into the European crosses, I got yo back with swing and long-term trade setups on USD/JPY and EUR/CHF. Check it!

USD/JPY: 4-hour

USD/JPY 4-hour Forex Chart
USD/JPY 4-hour Forex Chart

Eeenie, meenie, miney, mo, where the heck will USD/JPY go?!

USD/JPY is chillin’ like a villain around the 108.50 minor psychological handle, which is right smack at a range resistance that hasn’t been broken since September.

What makes the setup interesting today is that all that chillin’ has resulted in a bullish pennant that might push USD/JPY to an upside breakout.

Stochastic is currently in favor of the bears after just leaving overbought territory, but keep your eyes peeled for clues that the bulls still have muscle in their hustle to boost the dollar to the 109.50 – 112.00 previous area of interest.

Not convinced that an upside move is in the works? You can also short USD/JPY at the earliest signs of bearish momentum and aim for the 107.00 range support with your stops (way) above October’s highs.

EUR/CHF: Daily

EUR/CHF Daily Forex Chart
EUR/CHF Daily Forex Chart

EUR/CHF is having trouble making new October highs after hitting resistance at daily chart’s 100 SMA!

Does this mean that the euro’s partying days are over? A quick peek at EUR/CHF’s MarketMilk profile shows both Stochastic and Williams %R flashing overbought signals for the pair. What’s more, there’s also a bearish divergence on the chart!

Shorting at current levels would give you a good reward-to-risk ratio in case euro bears do end up dragging EUR/CHF to its 1.0850 previous lows.

Think it will be a while before the bulls cave in? You can also wait for a retest of the 1.1065 area of interest if you’re gunning for a higher selling price.

If you’re one of them euro bulls, though, then you might want to wait until EUR/CHF clears the 50% Fib and the 200 SMA before you aim for longer-term targets like the 1.1250 or even the 1.1400 previous resistance levels.

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line