Welcome to a brand new trading week!
What do you think of these charts?
USD/JPY: 1-hourUSD/JPY just found support at 111.00, which isn’t surprising since the major psychological handle also lines up with a 50% Fib retracement and a previous resistance zone.
Can USD/JPY extend its uptrend in the next few days? Dollar bulls can buy at current levels and aim for June’s highs or even the 112.00 inflection point if you see some follow-up on the dollar’s strength.
What if the dollar heads for a short-term reversal instead? Keep an eye on how USD/JPY reacts to the SMAs and consider the possibility of trips to the 110.00 or 109.50 support zones if the dollar trades (and stays!) below its 1-hour SMAs.
If you think that AUD/JPY has been trading inside a range, then you’d be right.What makes the chart interesting today is that the Aussie is flirting with a trend line resistance that hasn’t been broken since the start of June.
But wait, there’s more! Check out how the trend line is also around the mid-range and 100 SMA resistance!
Bears can start placing short orders as soon as AUD/JPY hits the 83.70 zone or starts seeing bearish momentum. The 82.50 range support is a good initial target though you can also aim for lower inflection points if we see a downside breakout.