Put on your trend-trading hats because we’re checkin’ out trend plays on a major and a currency cross pair.
Get ’em while they’re hot!
USD/JPY has been making pips rain since the start of the month and now it has taken a breather inside a potential bullish pennant on the 1-hour time frame.Can the dollar extend its gains against the yen? A clear break above 108.50 could push USD/JPY to a retest of the big 110.00 psychological handle.
Meanwhile, a downside breakout could give the bears enough fuel to revisit the 107.80 previous consolidation level or even the 107.50 zone closer to the 100 SMA.
USD/JPY is about to hit the end of the pattern, so y’all better be ready with your trading plans once we see momentum backing the breakout!
Not feeling like trading the dollar these days? I got yo back!GBP/NZD looks ready to get over the 1.9300 major psychological level that lines up with Fib retracement zones, a trend line support, and a broken resistance area. Oh, and check out the bullish divergence on the 1-hour chart!
A long trade at current levels would give you the best reward-to-risk ratio especially if the pound jumps to its March highs near 1.9400 or makes new monthly highs.
If you’re more confident about shorting the pound against the Kiwi, though, then you’ll want to at least wait for a clear break below the tren line and even the 100 and 200 SMA support zones.
Once GBP/NZD bears manage to keep the pair below 1.9300, then maybe we’ll see moves to the 1.9100 or 1.9000 areas of interest.