NZD/JPY is having trouble making new lows below 71.80, which isn’t surprising since it lines up with a 50% Fib retracement AND is just above the 200 SMA on the 1-hour time frame.
Buying at the earliest signs of bullish pressure would give you a good reward-to-risk ratio especially if you place your stops just below the trend line and aim for previous highs near 72.60.
If you’d rather short Kiwi against the yen, however, then you could also wait for the pair to make a clean break below the trend line and aim for previous areas of interest closer to 70.90 – 71.20 instead.
What do you think? Can Kiwi bulls can extend their momentum in the next couple of days?
Here’s another one for trend warriors out there! AUD/CAD is chillin’ around the .9000 major psychological handle, which is right around a trend line support that hasn’t been broken since early October.
What’s interesting about this is that the pair has been sporting hot dojis in the past couple of hours.
Will all this hesitation lead to an upward swing for the pair? Buying at current levels could make for a sweet trade especially if you target the .91110 “triangle” resistance and place your stops just below the trend line.
If you’d rather trade on a downside breakout, though, then you might want to wait until AUD/CAD clears the trend line as well as the .8975 area of interest before you place them shorts.
Whichever bias you end up trading, make sure you use your best risk management skills when you execute them trading plans!