Yen crosses are on fire, my dudes!
Think we’ll see at least some pullback for GBP/JPY and NZD/JPY today?
Take a look at their charts!
They even managed to push GBP/JPY to the 154.50 levels before some bears paid attention!
Pound bulls have been partying in the pips streets since the start of the month.
Will the pound see a deep retracement against the yen? Take note that there’s a Head and Shoulders pattern on the 1-hour time frame and, judging from the last candlestick pattern, the bears are determined to drag the pound lower.
Extended moves below the “neckline” that we’re watching can drag GBP/JPY to areas of interest like the 152.75 pause earlier this week or the 100 SMA that’s not far away from the 61.8% Fib pullback of the latest upswing.
If GBP/JPY goes back up and decides it’s in the mood to make new October highs, however, then we could see Guppy retest the 156.00 highs seen back in May.
Feel like trading ranges?
If you are, then you’ll love that NZD/JPY is hanging out at the 78.75 levels, which lines up with a resistance that the bears have been taking cues from since late May.Oh, and look at that! Stochastic is also on the bears’ side with an overbought signal!
Before you short the Kiwi like there’s no tomorrow, though, you should note that the October uptrend looks like it means business. Unless we see a catalyst, we probably won’t see any deep pullbacks anytime soon.
Keep an eye on NZD/JPY, which could find support at 78.00 before extending its upswing.
If the bears find more friends in the next trading sessions, then you also gotta be ready to trade a possible trip down to the 76.50 range support!