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Holla if you’re trading the dollah!

Not only are we revisiting previous setups, but we’re also identifying new trade opportunities on EUR/USD and USD/JPY.

Check it out, yo!

USD/JPY: 1-hour

USD/JPY 1-hour Forex Chart
USD/JPY 1-hour Forex Chart

If you’ve been watching USD/JPY’s chart, then you’ll know that the pair has just broken below an ascending channel on the 1-hour time frame.

Instead of free-falling, though, dollar bulls and bears played tug-o-pips inside a 50-pip range.

Will the consolidation lead to a reversal?

Shorting at a (clear!) break below 107.40 would make for a good entry if you’re betting on the dollar seeing a downtrend against the yen.

Of course, you can also wait until the 100 SMA crosses below the 200 SMA if you’d like just one more signal before you jump in.

Think the dollar bulls are just taking a breather? You can buy at current levels and then play the range or hold your position until USD/JPY breaks above the 107.90 range resistance if you’re one of them dollar bears.

Whichever bias you end up trading this week, make sure you’re sticking to your original stop losses!

EUR/USD: 4-hour

EUR/USD 4-hour Forex Chart
EUR/USD 4-hour Forex Chart

A coupla days ago we identified 1.0975 as a potential resistance on EUR/USD’s 4-hour chart.

But that was a week ago. Not only has EUR/USD fallen to the 1.0890 mid-range level, but it has also jumped back up to retest the 1.0975 zone!

What makes the setup interesting this time is that Stochastic is also flashing an overbought signal. As you can see, the last time that happened was when EUR/USD found resistance at the range’s ceiling.

Shorting at current levels with a stop above May’s highs would give you a good reward-to-risk ratio if EUR/USD falls back down to the mid-range or even the 1.0800 range support levels.

If you’d REALLY like to buy the euro against the dollar, though, then you can also wait for new monthly highs from the pair and then target areas of interest close to 1.1050 or 1.1125.

Forex Chart Settings:

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