Welcome to a brand spankin’ new trading month, brothas! Let’s play around with forex trade opportunities on EUR/JPY and CAD/JPY. Check out these charts!
EUR/JPY is having a hard time breaking below the 132.00 handle, which isn’t surprising since it lines up with a channel support that has been valid since late March. What’s more, it’s also right around the 100 and 200 SMAs!
With a bullish divergence forming on the 4-hour time frame, I won’t be surprised if some bulls start to attack. Buying at current levels could give you a good reward-to-risk ratio especially if you aim for the previous highs just below 133.50.
If you’re one of them euro bears, however, then you could also wait for a break below the channel and 200 SMA before stepping in. Just make sure use wide stops, aight? After all, yen crosses like these can see volatility like nobody’s business!
Breakout alert! CAD/JPY is flirting with the 85.25 level, which marks the resistance of what looks like an ascending triangle or a bullish pennant on the 4-hour chart.
The 100 SMA is on the bulls’ side this time, so it’s likely that we’ll see more upside price action. The bears could still hustle their muscles, however, and drag the paid back to the previous area of interest near the 83.50 MiPs and 200 SMA.
Think the pair will break to the upside? Or will we see the yen clobber the Loonie over the next couple of trading sessions?
Stick around and prepare for either scenario by coming up with solid trading plans!