It’s all about the yen on today’s canvas, as we play around with forex trade opportunities on CAD/JPY and CHF/JPY. Check them out!
CHF/JPY is having trouble trading above 108.00, which isn’t surprising since it lines up with a channel resistance that hasn’t been broken since mid-August. What’s more, it’s also near the 200 SMA on the 1-hour chart!
What makes the setup interesting today is that the pair is sporting tall wicks around the psychological handle. Will this lead to further losses for the franc?
Shorting at the earliest signs of bearish momentum could give you a decent reward-to-risk ratio especially if the franc falls back below its August lows.
If you’re not convinced of the yen’s further gains, however, then you could also wait for the pair to break above the channel AND 200 SMA resistance levels that we’re watching.
Whichever bias you choose to trade, make sure you’re trading what you see and not what you think! Remember that it’s better to be profitable than to be right if you want to become a consistently profitable trader!
Remember that triangle support play that we spotted a few days back? Well, it looks like the bears are having trouble executing a breakout!As you can see, CAD/JPY is still chillin’ like ice cream fillin’ on around the 80.00 major psychological handle. If this means that the sellers are running out of juice, then we could see the Loonie pop up to the 81.75 triangle resistance and 100 SMA levels soon.
If the bears are just getting ready to make pips rain, however, then you’re better off waiting for a clearer direction before you place your orders. In this case, a straddle-type strategy could work for you.
What do you think? Which way will CAD/JPY go? Lemme know what you think!