It’s Friyay, y’all! Cap the week strong with these sweet long-term opportunities on USD/JPY and AUD/CAD!
Somebody holler at Huck because this is too good to miss! USD/JPY is having trouble breaking below the 112.00 level after finding resistance from the 114.50 mark.
What makes the current consolidation interesting is that 112.00 is not only an area of interest, but it’s also around the middle of a symmetrical triangle on the daily chart.
Stochastic is currently flashing an oversold signal, so you can bet your pips (with proper risk management, of course) that bulls already have their sights on another retest of the previous highs.
But a symmetrical triangle is a symmetrical triangle, which means that the pair could still go either direction. You could buy at the first signs of bullish momentum and place your stops below the triangle support if you think that 112.00 will hold as support.
If you’re one of them conservative traders, though, then you could also wait for an actual breakout before choosing a bias. Either way, you should keep close tabs on this one in case we see volatile price action near the end of the triangle pattern!
Here’s one for countertrend traders out there! AUD/CAD looks like it’s about to turn from the 1.0000 major handle, which isn’t surprising since it’s also right smack at a descending channel resistance on the daily time frame.
If you squish your charts a little bit more, you can see that AUD/CAD’s uptrend remains intact with the parity resistance lining up with a mid-channel and SMA resistance levels. Oh, and look at stochastic hitting the overbought territory!
Shorting at current levels could get you decent pips especially if you only aim for the channel support around the .9800 lows.
But if you’re no fan of countertrend trading (it isn’t for everyone after all), then you could also wait for the Aussie to hit the .9800 – .9850 previous support before placing buy orders.