Trend traders huddle up! CAD/JPY is currently testing the 78.00 major psychological handle, which is right smack at a rising channel support on the 1-hour time frame. What’s more, stochastic is also popping up an oversold stochastic signal. Think the Loonie is about to gain more pips on the yen? A long trade at current levels could get you a good reward-to-risk ratio especially if you hold the position until it reaches its channel resistance. Of course, you could also wait for a break below said support levels if you’re one of them Loonie bears or yen bulls.
Here’s another trend trade for ya! AUD/JPY is lollygagging at the 79.50 minor psychological handle, which is near a rising channel support as well as the 100 and 200 SMAs on the 1-hour chart. What makes this setup more interesting is that there’s a possible bullish divergence on the chart. What do you think? Is the Aussie set to have another good run against the yen? Watch this one closely, forex brothas!
Breakout alert! USD/JPY has just broken above a range resistance that the pair had been following since mid-June. Are we looking at a legit breakout above the range and the 100 SMA? Or is this a fakeout much like the one we saw in mid-July? The bearish divergence is currently on the bears’ side right now with stochastic popping up lower highs. In any case, make sure you stick around to watch the next candlesticks to see if we can get any clues as to where USD/JPY is headed next!
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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.