To the SA traders who exercised patience and discipline yesterday while waiting for the stochastic cycles to line up on the pairs they were trading, good job! Day two of the exercise – lining up stochastic cycles on Daily, H4 and H1. Here follows a watch list of USD and JPY pairs to keep your eye on. Stay humble, manage your risk and stick to your plan. Best of pips to you! Also – remember to always read the fundamental summary Kate posts everyday so that you know what’s going on with macro economics. Remember – fundamental news moves the market, technical analysis just tells you when and where to get in and when and where to get out.

USDJPY: Daily overbought with a bearish market according to MACD (below zero) though MACD has crossed and 21 and 55 are flat so bearish market is technically slowing down. H4 overbought with bullish market (MACD above zero though looking like it wants to turn). Market may be expecting action from BOJ on 29 July so don't be surprised if we see continued Yen weakness until then. Look out for comments released by BOJ members in the days to come. Daily, H4 and H1 stochastic lined up nicely last night before the close of NY. If you are a bear then wait for an overbought H1 and find resistance. If you are a bull then wait for oversold on M15 and M5 and find support. AUDUSD: Daily started dropping from overbought last night. H4 just above oversold with H1 being oversold. Pay attention to that 21 EMA on the daily chart - could play as support. Market on daily is bullish though looks like it's slowing down - daily is currently at 21 EMA - if bulls buy here, this predicts a higher high so keep an eye on that. Market on H4 is moving from bullish to bearish. Market on H1 is bearish. If you are a bear then wait for an overbought H1 - keep in mind that stochastic can reach 50% line and fall so pay attention to that level and trade accordingly. Remember - we only buy at support and sell at resistance. USOil: Look at the Daily, H4 and H1 charts... Maybe pay attention to the next oversold M15 or M5... Also keep an eye on NZDUSD and USDCAD - those daily stochastics are going to be oversold in the near future - what's your plan?

Isn't that a pretty picture - keep in mind that the market is looking to the next BOJ policy meeting for action out of the BOJ. Meeting takes place on 29 July. Having said that - our exercise for this week is to line up stochastics on daily, H4 and H1 and then sell at resistance or buy at support. Take a look at the H4 and H1 charts for each JPY pair and make your analysis accordingly. Be patient and only pull the trigger when price falls in your trap. Good things come to those who wait.

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