If you’re lookin’ for some short-term setups on the yen, then I’ve got your fix, since I’m serving up a channel on CAD/JPY and Fibonacci play on CHF/JPY in today’s intraday charts update.
CAD/JPY has been trading higher recently. And if connect the most recent peaks and troughs, then we get that there ascending channel to play with.
However, the pair is currently testing the channel’s resistance area, so the more conservative among y’all will have to sit this one out until the pair moves lower to test the channel’s support area.
But for the real gangsta traders out there, just know that the pair appears to be hesitating at the 88.00 major psychological level. Moreover, stochastic is already signaling overbought conditions and all that. As such, there’s a good chance that the pair may be moving back down soon.
And if the pair does start to move back down, then them bears will likely be gunning for the channel’s support area, which should be somewhere between 87.40 and 87.00.
And if bearish momentum is so strong that the pair stages a downside breakout and the key price area at 86.60 is taken out, then y’all may wanna bail yo longs (if you have any) and y’all may even wanna switch bias.
No fancy chart patterns on this here pair! Well, we did have a descending channel that we identified way back on August 25.
Unfortunately, the channel got invalidated, although y’all were probably able to bail early since I warned y’all that a 114.30 is breached, then that’s a sign that bulls are in control.
Anyhow, the pair also cleared the other key area at 114.70 that I told y’all to watch, so we’re now bullish on the pair. And since the pair is pulling back, then we might as well have a Fibonacci retracement setup as today’s play.
Presently, the pair is testing the broken resistance at 114.30. And if we use our Fibonacci tool, we can see that 114.30 is close to the 38.2% retracement level.
Chances are good that support may form here since stochastic is already signaling oversold conditions and all that. However, there’s still a risk that the pair may even lower to the 50% retracement level, which is just above the 114.00 major psychological level.
And if the pair moves even lower past that, then the setup is invalidated, especially if the pair goes all the way down and smashes past 113.50. Y’all may wanna think about bailing then.
In any case, just make sure to practice proper risk management, a’ight?