USD/JPY looks like it’s retracing after hitting resistance at the 110.25 psychological level.
If you think that the bulls are just taking a breather, then you’ll want to look at the 109.70 as a potential entry. As you can see, the level lines up with a broken resistance for the dollar.
Don’t wait too long, though! It’s also possible for USD/JPY to take off from its current levels as it’s already supported by the 200 SMA and a bullish divergence on the 1-hour time frame.
Think 110.25 is just about the ceiling for dollar bulls? You can also wait for the pair to break below the previous resistance area and aim for a move back to the 108.50 levels if you’d rather short the dollar against the yen.
Whichever bias you’re trading this week, make sure you follow your trading plan like your account depends on it!
Here’s one for the range traders out there! EUR/CAD looks set to bounce from the 1.4475 range support that has been keeping the bears from dominating since mid-September.
What makes the setup interesting today is that stochastic has just left oversold territory on the 4-hour chart.
Buying at current levels would still give you a good reward-to-risk ratio especially if you’re eyeing a mid-range test of the 1.4600 zone or a full range move to 1.4700.
If you’d rather sell the euro against the Loonie, however, then you could wait for a legit breakout or even a break-and-retest situation before putting on your shorts (positions, not underpants. Though you should definitely put one on if you have someone living with you).
Good luck and good trading this one!