Up and at ’em, forex brothas! I’ve got a triangle breakout cookin’ up on CAD/JPY and a long-term area of interest on EUR/JPY that you might want to check out.
CAD/JPY has bounced by around 200 pips since finding support at the 81.00 psychological support earlier this month.
Watch out for a possible tug-o-pips around the 83.00 area, which is right smack at a symmetrical triangle resistance on the 4-hour time frame. A break above May’s highs could push the pair all the way to the 85.00 area of interest.
Of course, you could also wait for a bounce from the 83.00 resistance and trade another trip down the triangle. Shorting at a downside bounce could still get you 100 – 150 pips if you aim for the 81.50 triangle support.
Whichever direction you pick, make sure you use wide stops, aight? After all, yen crosses like these can see volatility like nobody’s business!
Comdoll trading not your thing? Here’s one for ya! EUR/JPY is having trouble breaking below the 123.00 major psychological handle, which isn’t surprising since the level has been an area of interest for most of the year so far.
Stochastic is about to hit the oversold territory, so we might see a bit of bullish pressure from the level. A bounce higher could push the pair back to May’s highs around 125.50 or even March 2016’s highs near 128.00.
Meanwhile, a downside break could drag the pair to the 120.00 support in February or even the 118.00 area of interest from July last year.
In short, we’ve got lots of potential pips whichever direction this pair picks! Watch out for this one, will ya?