EUR/GBP Hits TP, USD/JPY Crawls Closer to It
We opened a buy forex signal in USD/JPY and a sell signal in EUR/GBP. Do the charts agree with our trade ideas?
As we mentioned in the midday brief, we opened a sell forex signal in EUR/GBP despite the GBP being in bearish mode today. We followed the price action in the last few hours on this forex pair and decided to go short.
That price action signalled that buyers couldn’t push higher, above the 100 SMA
In the brief, we posted the H4 chart of EUR/GBP, but the price action is more visible on the hourly forex chart. As you can see, the buyers had trouble taking the price above the 100 SMA (red). Every attempt was overwhelmed by sellers who took the price back below it.
The 200 SMA (purple) was another reason we opened that signal. It was another defense line for sellers just in case the 100 SMA gave up. So, we went short on this pair and it eventually turned lower and triggered out take profit.
Stochastic is almost oversold, so the retrace lower is almost done
USD/JPY is doing the same now as it is reversing after a retrace, but that’s going in the opposite direction. The moving averages have been doing a good job here too. They are clustered around the 112.30-50 region and have been providing solid support.
Now, this pair is reversing back up and our forex signal here is 15 pips in profit. If you must, just place the stop loss at breakeven and you will have a free ride.
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