Who’s up for trading triangles today? I hope you are, because I’ve got sweet setups on USD/JPY and NZD/JPY that you wouldn’t want to miss. Check it out!
Let’s start with a nice downtrend setup on USD/JPY. As you can see, a falling trend line has been pushing the pair into a downtrend since late July.
Luckily for the Greenback, the 108.75 has also been holding as support on the shorter time frame. That means we’re about to see a breakout, yo! Question is, which direction will the pair break to?
A break above the trend line could push the pair back above the closely-watched 110.00 mark. A downside break, however, represents a much bigger breakout on the higher time frames and could drag the scrilla all the way to the 106.50 – 105.00 zone.
Watch out for this one, brothas!
Here’s a longer-term trade for ya! NZD/JPY looks like it’s headed fast towards the 78.00 major psychological handle, which happens to be around a rising trend line of an ascending triangle that hasn’t been broken since mid-2016.
Kiwi still has some ways to go before testing the support area, so y’all have time to set up your trading plans before you pull the trigger on this one. The bullish divergence on the chart waits for no man, though!
Buying around the support area is a good bet if you think that NZD/JPY will head back for the resistance near 83.50. If you’re one of them yen bulls, though, then you could also wait for a downside break and aim for the 76.00 area.
Either way, make sure you place wide stops in your positions. After all, yen crosses (and higher time frames) like these can see volatility like nobody’s business!