Welcome to mid-week trading, yo!
I know you like them trend trades so I got you not one, but TWO opportunities to play today.
Check out USD/JPY and NZD/JPY’s charts!
USD/JPY is switching channels! After breaking below an ascending channel support, USD/JPY looks committed to staying inside a descending channel on the 4-hour time frame.If that’s not enough to get you making trading plans, you should also note that the 100 SMA can cross below the 200 SMA in the next trading sessions.
Will the dollar extend its downswing against the yen? Bears who are confident in the mid-channel resistance can short at current levels while aiming for new July lows.
The more conservative anti-dollar traders can also wait for a move up to the channel resistance closer to the SMAs before shorting USD/JPY.
Can’t decide whether you’re a range or trend playa? Be both this week!NZD/JPY just popped up a long-legged doji right as it hit a range support that’s been around since the start of the year AND a trend line support that hasn’t been broken since May 2020.
The cherry on top of this sweet setup is the 200 SMA chillin’ around NZD/JPY’s current levels.
A bounce from the 75.50 – 76.00 zone could lead to a retest of the 79.00 or 80.00 previous highs.
A clear downside breakout, on the other hand, could mean that NZD/JPY is ditching its year (plus a few months)-long uptrend.