Can you believe it’s already the middle of the week?
If you haven’t bagged pips yet, then you’ll definitely want to check out what’s up on USD/JPY and EUR/NZD’s charts.
Get’ em while they’re hot!
First up is a nice trend retracement play on USD/JPY’s 4-hour time frame.
As you can see, dollar bulls took a chill pill after their upswing ran out of steam around the 105.00 zone.USD/JPY is now testing 113.00, which is right smack at the 200 SMA on the chart as well as the 50% Fibonacci pullback of the September to October uptrend.
Can the dollar extend its gains against the yen? A long trade at the earliest signs of a bounce is a good bet if you believe that USD/JPY will return to its 115.00 highs.
Not a fan of the dollar? That’s aight, you can also trade a clear break below the 200 SMA and target previous areas of interest like 112.00 or 111.00.
Here’s one for the range warriors out there!EUR/NZD is trading inside a textbook range with the 1.6325 mark serving as resistance.
With Stochastic partying in the overbought region, you can bet that at least some of the bears are looking at the ranging candlestick pattern.
Shorting at current prices would yield the best risk ratio especially if the euro drops back down to the 1.6140 range support.
A clear break above the range resistance that we’ve marked, however, would open EUR/NZD to a move to the 200 SMA closer to the 1.6450 inflection point. Heck, we may even see a return to 1.6550 if there’s enough momentum!