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Yen traders huddle up!

If you’re in the mood for trend and breakout trades, then you’ll definitely want to check out what’s up on GBP/JPY and NZD/JPY’s 1-hour charts.

Let me know which setup looks more attractive to you!

GBP/JPY : 1-hour

GBP/JPY 1-hour Forex Chart

After breaking its weeks-long downtrend, GBP/JPY has found support and has been poppin’ up higher lows on the 1-hour time frame.

Pound bears are doing a good job of defending the 153.25 zone, though, which isn’t surprising since the area has been a BFD for GBP/JPY bulls and bears since June.

Are we looking at an ascending triangle breakout in the making?

GBP/JPY bulls who believe that the pair will extend its upswing can take advantage of the trend line support just above the pound’s current levels. If we do see an upside breakout with momentum, then y’all can add to your long positions and aim for June’s highs.

If the 153.25 resistance holds for another day, however, then we gotta take cues that there are not a lot of buyers yet for a breakout. You can short at the key resistance level or wait for a clear break below its trend line support with your eyes on July’s lows.

NZD/JPY : 1-hour

NZD/JPY 1-hour Forex Chart

That downtrend that we were watching a few days back may have led to a breakout but that doesn’t mean that we couldn’t make pips from it!

NZD/JPY is now chillin’ at the 77.00 psychological handle that conveniently lines up with the 50% Fib retracement of the last upswing, the 1-hour chart’s 200 SMA, and the broken trend line resistance on the chart.

Bulls who believe that we’re looking at a break-and-retest scenario can buy at current levels and target last week’s highs near 77.50 or the 78.10 inflection point for a decent enough risk ratio .

Planning on selling the Kiwi instead? You might want to do it after NZD/JPY returns back below its broken trend line resistance AND breaks below the observable trend line support before you can target previous lows like 76.10 or 75.50.