Happy Friyay, forex playas!
We’re all about the yen today as we explore EUR/JPY’s range and CHF/JPY’s trend pullback.
What do you think of their charts?
EUR/JPY bounced lower from 144.25 last week but it looks like there were enough buyers to keep EUR from falling below the 139.00 mark.
And why not? If you look closely, 139.00 lines up with a mid-range zone that bulls and bears have been minding since May.This time around, EUR bulls also have an oversold Stochastic signal on their side.
Will EUR/JPY bounce higher in the next trading sessions?
Buyers can start scaling in at current levels and add up as soon as there’s enough bullish momentum all the way to the 144.25 range resistance.
Meanwhile, EUR sellers can watch out for a break of the mid-range support which could take EUR/JPY back down to the 133.50 range support levels.
Here’s one for the trend warriors out there!
CHF bulls and JPY bears noped out of the 150.50 previous resistance level and now CHF/JPY is trading closer to the 145.00 area.
Are we looking at a bargain here?145.00 is a good entry point for trend traders who are watching CHF/JPY’s ascending trend line.
Of course, it also doesn’t hurt that 145.00 is right at the 4-hour chart’s 200 SMA as well as the 50% Fibonacci retracement of August and September’s upswing.
In addition to alll of those, there’s a bullish divergence on the chart.
Buying at current levels would yield a good risk ratio especially if you’re aiming for the 150.50 previous highs or even new 2022 highs for CHF/JPY.
Feel like CHF/JPY’s uptrend has run its course?
CHF bears and JPY bulls can also wait for a clear break of the trend line support before targeting inflection points like 142.50 or 139.00.