Sup, fellas! Let’s revisit USD/JPY’s range and USD/CAD’s break-and-retest situation and see if we can close the week on a strong note!
Earlier this week we talked about USD/JPY forming a bearish divergence just below the 109.00 range resistance. If you had shorted at current levels, you would’ve made at least 100 pips from today’s move!
But that’s history. Today we’re looking at a possible bounce from the 107.00 range support. And why not? With stochastic chillin’ like a villain in the oversold territory and today’s move losing a bit of momentum, the bulls might be in the mood to step in.
Buying at the earliest signs of bullish momentum would give you a good reward-to-risk ratio especially if USD/JPY goes back to the 109.00 resistance.
If you think that today’s selloff is only just the beginning, however, then you might want to wait until the pair breaks below the 107.00 mark before you unleash your breakout plays on the setup.
Good luck trading this one!
Remember that retracement play that we spotted on daily chart? Well, it’s almost game time for the bears!
USD/CAD is a few wiggles away from the 1.3300 major psychological handle, which lines up with a 50% Fibonacci retracement and an area of interest from early May.
What makes the setup more interesting is that we might soon see the 100 SMA cross below the 200 SMA. You know what that means?
Nothing. At least, not until the bears act on the signal and consider it time to get “Project: USD/CAD Reversal” going.
USD/CAD is only a few pips away from the 1.3300 mark, so y’all gotta make sure your trading plans are locked in if you’re planning on trading this setup!