Alright fam, you ready for mid-week trading? Let’s see what’s going on in the forex market.
Just the other day we talked about USD/JPY possibly finding trend retracement support from a Fib level near a previous high.
But it looks like the bears had more juice than we thought!USD/JPY is now closer to the 110.00 major psychological handle that’s nearer to the 200 SMA as well as ascending channel support that hasn’t been broken since late April.
Can the dollar still extend its gains against the yen? It has some ways to go before actually hitting the channel support so y’all still have time to whip up trading plans around the setup.
A bounce from the channel and 200 SMA could set USD/JPY up for an extended uptrend. A clear downside break, on the other hand, could lead to a longer-term currency weakness for USD/JPY.
Reversal alert! USD/CAD looks ready for a trend reversal as it trades above the daily time frame’s 100 SMA.What makes the chart more interesting today is that a Cup and Handle-like pattern is forming under the 1.2300 area with the 1.2480 level acting as the “rim.” For newbies out there, cup and handles can signal a reversal after a long trend.
A break above the pattern’s “rim” and the daily chart’s 100 SMA can lead to a retest of the 1.2650 area of interest near the 200 SMA. If the upswing has momentum, we could even see a trip to the 1.2850 previous high!
Of course, that’s only if USD/CAD stays above the 100 SMA. If you see the bears coming in, then you gotta be ready for the dollar to dip back down to 1.2270 or the 1.2100 lows.