Are you ready to pick a side in this Battle Royale? On the green side we have a support at the 50% Fibonacci retracement level just above the significant 1.2600 handle. On the red side, the overbought signal of stochastics and the possible resistance at 1.2917 also make a good arsenal for the bears. Of course, you could also go neutral and play the range between the support and resistance as both levels look sweet spot for taking profits. Let’s get ready to rummmmmmble!!!
Boing! Boing! Will the pair continue to bounce along the range on the daily chart? Right now the pair is playing along the 1.0375 handle, but that little green candle just might signal another bounce up the charts. Hmm, my buddy stochastics is giving me little help with an almost, but not quite oversold signal. 1.0500 is a good target for a long position, while the bears can still push for 1.0300 before a clear signal on stochastics.
While the Loonie has been making waves against the Greenback, its situation with the yen has been quite different. In contrast to USDCAD, CADJPY has been on a clear downtrend that began all the way back in March. It had made major consecutive lower highs before it found support at 78.50 and retraced some of its losses. Now, it looks like the pair is deciding where to go as it tests the support-turned-resistance level at 81.50. If we see a daily candle close above 81.50, we may see CADJPY rally towards 83.50. A rejection at this level, on the other hand, could lead to a retest of former lows at 78.50.