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NZD/JPY is having trouble making new highs above the 77.75 area.And why not? The level lines up with a channel resistance that’s been relevant since mid-April. It also doesn’t help that the 100 SMA has just crossed below the 200 SMA.
The cherry on top of this sweet setup is a small divergence on the 1-hour time frame.
Shorting at the first signs of sustained selling pressure is a good idea if you’re betting on NZD/JPY extending its short-term downtrend.
If you’d rather buy the Kiwi against the yen, though, then you’ll want to do it after the Kiwi pops above the 77.30 area. The 78.00 handle is a good target but you can also aim for April’s highs if you’re confident in the Kiwi’s strength.
Countertrend traders huddle up!
After breaking above a trend line resistance, EUR/GBP is now trading inside an ascending channel on the 4-hour time frame.The odds currently favor the bears as EUR/GBP hangs out at the .8700 major psychological area. The resistance hasn’t been broken since late Feb, yo!
Euro bears can nibble around current levels and then push the pedal to the metal once EUR/GBP sees downside momentum. You gotta watch out for the mid-channel and 100 SMA support levels, though, in case the bulls are waiting for a chance to buy at the area.
Not comfortable trading against the trend? That’s alright, countertrend trading isn’t for everyone. You can also wait for a decent pullback if you’d rather buy the euro against the pound.