GBP/JPY is now trading at around 143.50, which is about 450 pips from its 148.00 resistance from late last week.
What makes the consolidation interesting today is that it lines up with a trend line support on the 4-hour chart. Not only that, but the level has also served as resistance back in early December!
Can GBP/JPY extend its uptrend in the next couple of days? Aside from the 100 SMA chillin’ just below the trend line, stochastic is also flashing an “oversold” signal for the bulls.
Before you buy the pound like there’s no tomorrow, though, you should know that MarketMilk already thinks GBP/JPY’s long-term trend is “bullish but weakening” on the 4-hour chart.
Think GBP/JPY’s uptrend still has legs? You can buy at the first signs of a bounce and aim for the previous highs near 148.00.
If you’d rather trade a downside break for the pound, then you could also wait for a clean break below the trend line and aim for the 139.50 or 141.00 levels instead.
NZD/USD: DailyCurrency cross trading not your thing? Here’s a dollar setup for you! A few days back we noted that NZD/USD is flirting with a falling trend line resistance that hasn’t been broken since late March.
Well, NZD/USD is now AT the trend line! Not only that, but it’s also showing long wicks around the area.
Does this mean that NZD/USD is ready for a downside move? Shorting at the earliest signs of bearish pressure could get you in at a good spot in the downtrend especially if Kiwi drops back to its .6250 lows.
If you’d rather trade an upside breakout, however, then you should definitely wait until NZD/USD breaks above the .6650 area and target the previous areas of interest near .6800 and .6900.
Good luck and good trading this one, yo!