Up and at ’em, forex brothas! I hope you’re into trading the yen these days, because I’ve got hot setups on CAD/JPY and EUR/JPY that you wouldn’t want to miss. Check it!
After breaking above a falling channel earlier this week, CAD/JPY is now back to the 88.50 handle. What makes the level interesting is that it lines up with the broken channel resistance on the 1-hour time frame.
Are we looking at a resistance-turned-support situation over here? Buying at the earliest signs of a bounce could still get you a pretty sweet deal especially if the pair ends up popping up to the 89.60 previous resistance.
If you’re not sold on the Loonie’s bounce, though, then you could also wait for the pair to go back below the channel and trade the downtrend instead. Either way, make sure you place relatively wide stops for yen crosses like these!
Trend trades not your thing? Here’s a range play for ya! EUR/JPY is lollygagging around the 133.00 major psychological area, which lines up with a mid-range support on the 4-hour time frame.
With stochastic already flirting with the oversold territory, you can bet your pips (with proper risk management, of course) that other euro and yen playas are already planning their trades.
Will we see a bounce higher? Or will the pair head to the range support near 131.50 before seeing bullish momentum? Keep close tabs on this one, brothas!