Who’s ready for last-minute pips?
I hope you are because EUR/JPY is hitting an uptrend resistance while AUD/JPY looks ready for a reversal.
Let’s goooo!!!
EUR/JPY: 1-hour
I don’t know if you’ve noticed, but EUR/JPY has been on a downtrend since the start of the month.
This time around, EUR/JPY is consolidating just under the 129.50 handle that lines up with the short-term channel ceiling, 50% Fib retracement of the last big downswing, and the 100 SMA on the 1-hour chart.
Think EUR/JPY can extend its downtrend? Look out for bearish momentum, which could drag the euro all the way to September’s lows near 128.50. Heck, it could even make new monthly lows!
If you’d rather buy the euro against the yen, then you’ll want to do it when EUR/JPY sees enough support to bust through the channel resistance. The 130.30 area of interest is a good enough target but you can also aim for 130.70 for a better risk ratio.
AUD/JPY: 4-hour
Is AUD/JPY ready for a longer-term reversal?
AUD/JPY is consolidating just above 80.50, which is near the 50% Fib move of the upswing that broke the weeks-long downtrend.
Aussie bulls who are betting on a reversal can buy at current levels and initially aim for September’s highs.
If you see enough buying pressure, then you can up your game and aim for higher areas of interest like 84.00 or 85.00.
Think the latest “breakout” is just a fakeout? Keep an eye out for when AUD/JPY makes new monthly lows, which could lead to the pair dropping back to August’s lows.
