Whattup, forex playas!
Breakout traders gather ’round!
NZD/JPY is testing the 79.00 major psychological handle that had caused at least two 200-pip drops for the Kiwi so far this year.
Is the third time the charm for the bulls? A clear break above 79.000 would mean new 2021 highs for the Kiwi and maybe a trip to the 81.00 area of interest.
A bounce from the resistance, on the other hand, could lead to the bears attacking until NZD/JPY drops back to its trend line support.
Whichever direction NZD/JPY ends up trading, make sure you’ve locked in your trading plans before the pair sees increased volatility!
Cable looks ready to retest the 1.4200 February highs! As you can see, the pound saw a top and then a reversal around the area back in 2018.
Let’s see if history repeats itself.
Pound bulls can take advantage of the current upswing and buy the currency until we see more bearish candlesticks. Be careful of the big 1.4000 level, though, as it can attract tons of short-term bears.
Meanwhile, the bears can either wait for momentum at a rejection of the 1.4000 handle, or they can start placing some shorts in case GBP/USD retests 1.4200.
The 1.3750 double top “neckline” is a good initial target but you can also shoot for a downside breakout all the way to the 1.3450 major area of interest.