Whattup, forex playas!
I know you know that USD/JPY and AUD/USD are in short-term trends (it’s in the title lol) but I don’t think you’ve noticed that the pairs are trading near key inflection points.
What do you think of their charts this time?
USD/JPY: 1-hour
Ready for more dollar weakness? Just earlier this week we spotted USD/JPY chillin’ near a channel resistance on the 1-hour time frame.
Did you trade the downswing? If you made pips from the move, then congrats! Expect a Venmo request within 24 hours. Kidding. Maybe.
If you missed the move, then you should know that USD/JPY is back at the channel resistance. This time, it’s the 109.80 zone that’s keeping the bulls contained.
Look out for momentum below the current levels, which could drag USD/JPY back to its September lows.
If you see USD/JPY trade above the channel, though, or if the dollar starts getting bullish momentum above 110.00, then you gotta be ready to switch biases and aim for areas of interest like 110.50 or 111.00.
AUD/USD: 1-hour
A day after we discussed USD/JPY we saw AUD/USD struggle to make new highs above a 50% Fib retracement inside a descending channel.
If you used your forex spidey senses and shorted the comdoll, then you would’ve profited from AUD/USD dropping back to the .7230 zone.
Now that AUD/USD is approaching the channel and 100 SMA resistance levels, you can bet that at least some trade warriors are looking for opportunities.
Before you place your shorts, though, you should know that AUD/USD is also finding a lot of buyers around September’s lows. In fact, the support has led to a descending triangle consolidation that could also lead to an upside breakout.
What do you think? Will AUD/USD make new September lows? Or will it finally break its short-term downtrend and make plays for the .7300 and .7350 previous areas of interest?
