Who’s ready to bag pips today?
I hope you are because USD/JPY and EUR/GBP are approaching key support and resistance levels!
Let me know which setup you’ll most likely trade!
USD/JPY: 1-hour
Not so fast! USD/JPY has found some support after dipping below 108.50 last Friday.
Bears can get another chance at shorting the dollar if USD/JPY gets rejected at the 109.00 major psychological level.As you can see, it lines up with a 50% Fib retracement of the last downswing as well as a key inflection point since late April. Oh, and keep your eyes peeled for a possibility of an SMA crossover!
Not feeling like selling the dollar against the yen? You can also buy you some USD/JPY but make sure that the pair is already trading above the trend line connecting the higher lows and maybe even the SMAs to increase the chances of USD/JPY extending its upswing.
EUR/GBP: 4-hour
Just last week we played around EUR/GBP finding channel support near the 200 SMA.
Well, I hope you traded the setup because the euro jumped by 75 pips before finding resistance!Those who missed the trade have another opportunity as EUR/GBP plummets to the 200 SMA‘s direction.
Note that this week’s conditions are somewhat different because this downswing looks like it means business. Heck, Stochastic hasn’t hit oversold yet! It would help if you wait for some bullish candlesticks or some momentum if you’re jumping on EUR/GBP’s uptrend.
