USD/JPY is having trouble breaking above 106.00, which isn’t surprising since the level is near a descending trend line, 200 SMA, and a 61.8% Fib retracement level on the 1-hour time frame.Shorting at the first signs of bearish pressure would give you a good reward-to-risk ratio especially if USD/JPY drops back down to its 102.00 March lows.
If you’re betting on further dollar strength against the yen, however, then you can also wait until USD/JPY trades comfortably above the trend line that we’re watching.
A long trade at the first signs of a breakout could still give you decent pips especially if you target areas of interest like 107.50 or even 110.00.
Breakout alert! Not only has NZD/CAD broken above a descending trend line, but it also looks like the bears have dragged the pair back down for a retest!Are we looking at a break-and-retest opportunity over here? Buying at a bounce from the trend line (and the SMAs!) would yield tons of pips especially if NZD/CAD pops back up to its .8700 highs.
Not convinced that Kiwi is in for a bounce against the Loonie? That’s fine, you can also wait until NZD/CAD drops back below the trend line and trade the downtrend all the way to the .8300 lows.