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Can’t decide if you wanna trade day or swing trade setups today? Don’t worry, I got yo back with a possible breakout on GBP/JPY and a downtrend on USD/CAD!

GBP/JPY: 1-hour

GBP/JPY 1-hour Forex Chart
GBP/JPY 1-hour Forex Chart

GBP/JPY is lollygagging in a triangle after rising strongly in the past couple of days. Are we looking at a bullish pennant in the making?

If this is indeed a pennant, then Guppy could be in for an extended uptrend. However, take note that the 100 SMA is also about to cross the 200 SMA and that we could also be looking at a symmetrical triangle that could break in either direction.

Placing orders after the pair breaks out might be the best play for this one. A break below the 150.25 levels could drag the pair all the way to the 147.50 previous area of interest. Meanwhile, an upside breakout could push it back up to the 153.00 – 154.00 levels.

Watch this one closely, brothas!

USD/CAD: 4-hour

USD/CAD 4-hour Forex Chart
USD/CAD 4-hour Forex Chart

Here’s one for my trend rider friends out there! USD/CAD is now trading around the 1.2475 area, which is right smack at a falling channel resistance on the 4-hour time frame.

Stochastic is also chillin’ like a villain on overbought territory, so y’all can expect some selling pressure around the area. Question is, will it be enough to extend USD/CAD’s downtrend?

A convincing break above the 1.2500 handle could take the pair to the 1.2600 – 1.2700 area. But if the bears manage to drag USD/CAD back down, then the pair could revisit its lows near 1.2100.

Forex Chart Settings:

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