Which of these charts would you rather trade?
Read up and make pips, yo!
USD/JPY is having trouble trading above 105.50, which isn’t surprising since the minor psychological handle is right around the 100 and 200 SMAs on the 4-hour time frame. Not only that, but it also lines up with a descending channel resistance that hasn’t been broken since June!With Stochastic chillin’ like a villain in the overbought territory, you can bet pips that dollar bears are also watching this setup.
Shorting at current levels offers the best reward-to-risk ratio especially if the dollar ends up dropping back to the 104.00 previous lows or even makes new October lows.
A break above the channel resistance, on the other hand, could push USD/JPY to the 106.30 or 107.00 previous areas of interest.
Good luck and good trading this one!
NZD/USD is consolidating at .6650, which is right smack at a mid-range resistance on the 4-hour time frame.
Note that NZD/USD is just coming from a decent upswing which means traders are still deciding on the next direction for the Kiwi.If you’d like some short-term pips and you believe that Stochastic just coming out from the overbought zone means that NZD/USD is about to drop by some pips, then you can short at current levels and target the .6540 range support.
But if you’re one of them Kiwi bulls who would rather buy the Kiwi against the dollar, then you can also wait for a break above the consolidation before aiming for the .6750 range resistance.
Whichever direction you choose to trade, make sure to wait for some kind of momentum so you can increase your chances before pulling the trigger. Of course, knowing NZD/USD’s average daily volatility won’t hurt either.