Is that a legit breakout or what? I showed y’all this USD/JPY symmetrical triangle a couple of days back and it appears that the pair finally picked a direction. Price has already broken below the triangle support and has pulled back before resuming its drop. Don’t fret if you’ve missed the actual breakdown or the pullback because you could still have a chance to hop in the potential selloff on the break of those previous lows. Stochastic is moving down from the overbought area, which means that there’s enough momentum for USD/JPY to head south.
If you think the pound’s uptrend is likely to continue, then you gotta take a closer look at this GBP/JPY trend line play. A bounce might take place and confirm the formation of the rising trend line on the pair’s 1-hour forex chart. The 38.2% Fibonacci retracement level is in line with the trend line and the 173.00 major psychological level, which has acted as an area of interest for GBP/JPY. Be careful since stochastic is still crawling down, which suggests that a deeper pullback to the next Fib levels might take place.
Remember that strong upside break from CAD/JPY’s rising channel resistance last week? Well, it looks like the pair is having trouble breaking past the 95.15 area and might be looking to gather more Loonie bulls before resuming its climb. The short-term Fibonacci retracement levels are close to the broken channel resistance, with the 94.50 minor psychological level likely to hold as support if the retracement is shallow. Heck, stochastic is already moving out of the oversold area, hinting that buyers are ready to jump back in!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.