Higher highs and higher lows… Why, that’s a rising channel right there! EUR/JPY seems to be determined to keep heading north, as it gears up for a potential bounce from the channel support. Take note though that stochastic has already reached the oversold region, which suggests that euro bulls are ready to charge. Better wait for the oscillator to start moving higher if you’re planning to go long!
Is the Loonie rally over? CAD/JPY has formed a double top pattern, which is a classic reversal formation, on its 4-hour time frame. The pair has yet to make a break below the neckline around the 96.00 major psychological level before the reversal signal is confirmed. Stochastic is hinting that Loonie bears might need to regroup and gather more energy for a breakdown, as the oscillator has already dipped into the oversold area.
Aussie bulls, watch out! AUD/JPY is having trouble sustaining its rallies past the 93.00 major psychological level, as a bearish divergence has formed around that resistance zone. The pair might start selling off as soon as stochastic falls below the overbought area, but make sure you take a peek at our handy-dandy Divergence Cheat Sheet if you’re thinking of selling AUD/JPY!
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.