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Wattup, forex warriors! It’s all about the yen on today’s canvas, as we play around with opportunities on EUR/JPY and GBP/JPY. Check them out!

EUR/JPY: 1-hour

EUR/JPY 1-Hour Forex Chart
EUR/JPY 1-Hour Forex Chart

EUR/JPY is having trouble making new highs above the big 120.00 major psychological handle, which isn’t surprising since it lines up with a channel resistance that hasn’t been broken since mid-November.

What makes the chart interesting today is that it looks like the 100 SMA is about to cross below the 200 SMA on the 1-hour time frame. What’s more, MarketMilk™ is also pointing to the pair’s trend being “bearish” in both short and long-term SMAs.

Shorting at the first signs of bearish momentum would give you a good reward-to-risk ratio especially if you place your stops just above the channel and aim for November lows near 119.50. Given that EUR/JPY tends to move by about 200 pips every November, the euro has enough room to fall against the yen.

Think EUR will actually head higher? You can wait until EUR/JPY breaks above the channel and makes new weekly highs before placing your best breakout entries.

Good luck and good trading this one!

GBP/JPY: Daily

GBP/JPY Daily Forex Chart
GBP/JPY Daily Forex Chart

Guppy is chillin’ like ice cream fillin’ around the 141.00 psychological handle, which is right smack at a 61.8% Fib and previous area of interest on the daily time frame.

Which way will GBP/JPY go? Before you decide, you should know that GBP/JPY’s MarketMilk™ volatility profile points to the pair moving by around 200 pips every November. And, given that it has already gained 79 pips so far this month, further upside action may be limited.

Does this mean that the pair would head lower instead? It’s possible. Shorting as soon as you see bearish momentum would get you decent pips especially if the pound ends up dropping back to its 2019 lows.

Just take care not to use tight stops! You don’t want to get stopped out before your trade sees decent action, do you?

Forex Chart Settings:

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