Welcome to mid-week trading, forex friends!
Feel like setting yourself up for pips for the second half of the week?
AUD/JPY is offering a pullback while the U.S. dollar index hangs out at the top of a range!
U.S. Dollar Index (DXY): 1-hour
Range playas might want to know that the U.S. dollar is trading inside a 75-pip range in the 1-hour time frame.
More importantly, the dollar is testing the top of said range while Stochastic consolidates in overbought territory.
Will we see the dollar lose pips across the board today?
Momentum below the 110.25 range resistance could drag DXY to the 109.75 mid-range levels if not the 109.40 range support.
If the dollar ends up busting above the range, however, then you also gotta be ready to aim for the 110.80 inflection point or higher.
AUD/JPY is chillin’ like a villain at the 96.00 zone, which lines up nicely with a key resistance from April, June, and July.
This time around, 96.00 is also near the 100 SMA on the 4-hour time frame as well as the 50% Fibonacci retracement of the last major upswing.
Can AUD continue to gain pips against JPY?
Look out for momentum above current prices which could take AUD/JPY back to its September highs near 98.00.
If AUD/JPY ends up trading below the Fibs and the 200 SMA, though, then the pair might head to inflection points like 94.00 or 92.00.