Who’s ready to get some pips? If you are, then you’ll definitely want to see what I spotted on USD/JPY and CAD/JPY‘s charts!
USD/JPY 4-hour
USD/JPY is having trouble extending its losses below 109.00, which isn’t surprising since the level is around a mid-channel support on the 4-hour time frame.
What makes the area more interesting is that it’s also just above a 100 SMA retest AND is also near a 50% Fib retracement.
Think USD/JPY is in for more gains? Buying at current levels would give you a good reward-to-risk ratio especially if you place your stops just below the SMAs and USD/JPY ends up surpassing November’s highs.
Not feelin’ like buying the dollar against the yen? Can’t blame ya, MarketMilk is already warning that USD/JPY’s 4-hour uptrend may not be as strong as we think it is!
If you do plan on shorting USD/JPY, make sure you do it below the channel support so you don’t end up catching a falling knife.
CAD/JPY: 4-hour
Dollar pairs not your thing? Here’s a currency cross setup for you!
CAD/JPY looks ready to bounce from the 82.00 major psychological handle, which is right smack at a 50% Fib retracement AND a resistance-turned-support situation on the 4-hour time frame.
If the chart looks like a range rather than a break and retest to you, then you’re gonna love the fact that stochastic is chillin’ like a villain on the oversold territory.
Can Loonie bulls gain enough momentum to retest CAD/JPY’s 82.50 highs? Or will the bears gain enough support to drag the pair back to its downtrend?
Watch this one closely, yo!
Forex Chart Settings:
Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line