Let’s kick off this yen crosses party with a look at the CADJPY! It looks like an ascending triangle has formed on the 4-hour chart. Now remember, this is a bullish chart pattern. With price just hitting the rising support line and stochastics entering oversold conditions, could we see buyers jump back in? Look for a test of resistance at 94.30 and possibly, even a breakout to the top side! On the other hand, selling pressure might be too strong. If the rising trend line fails to hold, look for price to dip to major support at 90.25.
Where could the AUDJPY pair be headed next? Last week, the pair bounced off the rising trend line connecting the highs of the price. It busted through the resistance around the 87.40 level and hit a high of 88.09… but was that a false break? Buyers seem to have run out of steam, causing the pair to pull back below 87.40. It could retrace and retest the trend line, possibly at the 61.8% Fibonacci level, which lines up with a former support level. On the flipside, the pair’s rally could resume once it breaks above the recent high of 88.09.
Is that a head and shoulders pattern I spot on over by the punch table? Why, yes it is! My only question is, will sellers have enough juice to break past the neckline? If the neckline breaks, we could see sellers boogie all the way down former support at 141.85. On the other hand, if buyers have a high tolerance, they could throw their hands up in the air and push price to test former highs at 145.90.