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Short and long-term traders alike can take advantage of today’s Chart Art because we’re looking at EUR/JPY’s short-term channel and AUD/JPY’s Fib play. Check it!

EUR/JPY: 1-hour

EUR/JPY 1-hour Forex Chart
EUR/JPY 1-hour Forex Chart

EUR/JPY is trading in what looks like a descending channel on the 1-hour time frame!

What makes the setup interesting today is that the channel is “flat” enough that it looks like your basic consolidation on the higher time frames.

Are we looking at a reversal in the making? Shorting at the channel’s resistance would give you the best reward-to-risk ratio, especially if EUR/JPY ends up starting a downtrend.

If you’re one of them euro bulls, though, then you could also wait for a break above the channel or even October’s highs before you pull the trigger on them euro longs.

Good luck and good trading, yo!

AUD/JPY: Daily

AUD/JPY Daily Forex Chart
AUD/JPY Daily Forex Chart

Here’s one for the trend warriors out there! AUD/JPY is lollygagging around the 75.00 major psychological handle, which is right smack at a 50% Fib retracement and a previous area of interest for the pair.

If that’s not hot enough for you, then you should know that there might also be a bearish divergence on the daily time frame.

Shorting at the earliest signs of bearish momentum is a good idea if you want to bet on further Aussie weakness.

If you’d rather buy the Aussie against the yen, however, then you could also wait until AUD/JPY breaks above the 200 SMA and aim for potential trips to the 79.50 or even the 83.50 previous resistance levels.

Forex Chart Settings:

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