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USD/JPY is chillin’ just under the 110.50 mark after breaking below a months-long ascending channel pattern.As you can see, the 110.50 area lines up with the 38.2% Fib retracement of the last downswing AND the channel support that the pair had broken.
Can the dollar bears extend their run? Shorting at the first signs of momentum below the 200 SMA would make for a decent play especially if USD/JPY makes new July lows in the next couple of days.
If USD/JPY starts trading above the 100 SMA, however, then you gotta be ready to aim for an extension of the dollar’s uptrend and maybe aim for July’s highs.
Not feelin’ like trading reversal plays today? No worries, I still gotchu.You might like that CHF/JPY is finding resistance at the top of a range that hasn’t been broken since the second half of June.
What’s more, the pair is hanging out near its 4-hour SMAs just as the oscillator flashes an overbought signal.
Selling the franc at current levels makes sense if you’re betting on CHF/JPY’s range holding in the next few days. The 119.90 mid-range level is a good initial target but you can also aim for the 119.00 range support.
Meanwhile, a breakout above the range and the 200 SMA would mean that the franc bulls aren’t playing around. Look for a trip back above the trend line and even a revisit of June’s highs.