Daily Chart Art – Oct. 4, 2016

USD/JPY: 1-hour

USD/JPY: 1-hour Forex Chart

USD/JPY: 1-hour Forex Chart

Breakout alert! If you check out your 1-hour time frame, you can see that USD/JPY looks like it’s breaking above a falling channel. What makes this setup more interesting is that the 100 SMA has also just crossed above the 200 SMA. Are we seeing the start of an uptrend for USD/JPY? A long trade at current levels could get you decent pips especially if you aim for September’s highs. Of course, you could also wait for a break-and-retest situation before entering any long orders if you want to confirm the breakout first.

EUR/JPY: 4-hour

EUR/JPY: 4-hour Forex Chart

EUR/JPY: 4-hour Forex Chart

Hope you’re in the mood for another break-and-retest scenario because this one is too good to miss!. See, the pair recently broke below a symmetrical triangle, but eventually found support around the 112.50 minor psychological handle. Will the 114.00 levels serve as support-turned-resistance area for the bears? Shorting around the broken trend line could get you a decent reward-to-risk ratio especially if you place your stops just above the broken triangle and aim for September’s (or even July’s) lows. Make sure to keep your stops wide though, as yen crosses like this one can show volatility like nobody’s business!

CAD/JPY: Daily

CAD/JPY: Daily Forex Chart

CAD/JPY: Daily Forex Chart

Trend warriors huddle up! CAD/JPY is fast approaching the 80.00 major psychological handle, which is right smack at a falling trend line interest on the daily time frame. Not only that, but the level also lines up with a retest of the 100 and 200 SMAs in the charts. The cherry on top of this potentially bearish sundae is an almost overbought stochastic signal. The pair is still more than a few pips away from the area of interest, so you have time to whip up your trading plans before you put on any orders. Keep your plans tight, aight?

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line

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.