The Yen is really starting to move now! After such a long period of getting pummelled by just about every currency, the Yen is finally fighting back. In retrospect, the dollar lost big to the Yen as well as the Swissy. The Euro made a slight gain while the Cable (strangely enough) lost big to the dollar. I’ve been sitting out for a while now because I just don’t see any trade ideas that I’m comfortable with. I’d rather stay on the sidelines than enter the market just for the sake of trading. Let’s see if today’s charts provide us with any good opportunities…
The Euro made a slight gain against the dollar today but it’s starting to look like the momentum may be dying down. The bearish divergence on the 4hr chart that I mentioned yesterday is still in place and now that the daily stochastics are in overbought territory, this might be a good time to sell the pair. With its slight gain today, the pair broke has now officially closed past its 61% Fib line. I’d like to go short if the pair moves back under that level and set a target for 3100.
Sell at 3130; Stop Loss= 3160; Target= 3100; Target 2= 3050
The Cable did a complete 180 today and headed back down towards 9500. 4hr stochastics are trending down nicely and still have some room before reaching oversold territory. If the pair can break 9500 then I think we could see it move all the way back down to 9400. The Cable is a volatile pair so this is definitely a possibility.
The Swissy sliced through its 3 moving average support and is currently right around 2350. I’m still not sure if this is a good break of the support area and I’m not entirely convinced the pair will continue to move down. 4hr stochastics have been in oversold territory for a while now and daily stochastics has just entered oversold territory. So while we may see a little more downward movement, I think the pair will rally back up. In fact if the pair breaks back above its 200 SMA on the daily chart I’m going to go long and set a target for the 100 SMA and 50 EMA with my stop below the 200 SMA.
Buy at 2365; Stop Loss= 2345; Target= 2385; Target 2= 2400
Talk about a drop! The Yen made its biggest drop today amongst its comeback against the dollar. The question now is whether or not this momentum will continue through tomorrow. 4hr stochastics has been in oversold territory for a long time now and daily stochastics are just heading into oversold territory. We may see the Yen spike down to 119.00 or even its 100 SMA at around 118.70, but after that I have a feeling this pair will retrace back up. We’ve seen the pair drop over 200 pips within the last 3 days so I’d expect to see some profit taking throughout tomorrow.