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Let’s start this week’s intraday charts update with a couple of fresh retracements setups on USD/JPY and NZD/JPY. I guess that means I’m serving up a retracement + yen double special today.

USD/JPY: 1-Hour

USD/JPY: 1-Hour Forex Chart
USD/JPY: 1-Hour Forex Chart

USD/JPY has recently been pulling back after trending higher, as y’all can see on that there chart. However, the pair already appears to have found support. And using our handy Fibonacci tool, we can see that the pair bounced off the 61.8% retracement level at 110.50 and then promptly began to consolidate at 111.30, which is just above the 50% retracement level.

If them bulls win will in out, then they’ll likely push the pair higher, so keep an eye on 112.00, since clearing that price level would confirm the uptrend.

However, there’s also a chance that the pair may go lower instead. After all, them moving averages are already in downtrend mode and all that. Also, stochastic is pointing back down after reaching overbought territory, so them bears may be in control already.

And if bears are in control, then they’ll likely be gunning for 108.50 next. Y’all may therefore wanna keep a close eye on 110.50, since a strong downside break past that would confirm the downside push.

NZD/JPY: 1-Hour

NZD/JPY: 1-Hour Forex Chart
NZD/JPY: 1-Hour Forex Chart

That there chart looks like a mess at first, but there’s actually some order in that chaos. Know what I’m sayin, dawg? If not, then let me try to elaborate.

Right. The pair recently smashed up that there rising trend line. However, the pair soon found support at 76.40 and began pulling back all the way to the 61.8% retracement level at 77.60.

And in the process of pulling back, the pair confirmed that there descending channel. And it just so happens that the channel’s resistance area lines up with the 61.8% retracement level at 77.60.

Also the pullback is almost a retest of the broken trend line, so we also got a classic break-and-retest setup to play with. That also means that we’re mainly bearish on the pair. And all the more so, given that our technical indicators appear to support further moves to the downside. After all, stochastic is already signaling oversold conditions and all that. Them moving averages, meanwhile, are in downtrend mode, with the 200 SMA acting as dynamic resistance to boot.

As for price levels to watch, them bears will likely be shooting for 76.40 next, but they need to clear 77.40 first, so keep an eye on that as well. A strong break past 78.00, meanwhile, means that them bulls are in control and are trying to push the pair back above the rising trend line. So y’all may wanna think about bailing yo shorts if the pair gets there.

Forex Chart Settings:

Slow Stochastic: 14, 3, 3
100 SMAs: Blue line
200 SMA: Red line

To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.