Where my trend-trading friends at?
Y’all are in for a treat today because we’re looking at short AND long-term yen trends.
Check out EUR/JPY and CAD/JPY’s charts!
Yoooo do you remember the pullback trade that we spotted a few days back? Well, the bears have taken control again and now EUR/JPY has made new monthly lows!
But that’s not why we’re looking at EUR/JPY today. See, the bulls have gained enough ground that the pair has clawed its way back up from the 128.00 lows to its current 129.25 zone.The euro’s current levels now line up with a retest of the 100 SMA and a key support from last week. As our girl Olivia Rodrigo says, “Do you get deja vu?”
Shorting at current prices is your best bet if you believe that EUR/JPY can still extend its losses or at least revisit its November lows.
If you’re convinced that the euro will see an upside reversal against the yen THIS TIME, then you can set up long trades above the 200 SMA resistance and aim for potential inflection points like 130.00 or 131.50.
I know y’all have been looking at CAD/JPY slowly but surely following an uptrend since the start of 2020 so I’m pretty confident that you’ve also spotted this pullback play.
If you missed the memo, then you should know that CAD/JPY is trading near 90.50 that marks the 38.2% Fibonacci retracement of the latest upswing and is near May’s broken highs.Bulls who are taking cues from the bullish divergence can work with long trades at current levels with 2021’s highs as your initial targets.
Not sure about further gains for CAD/JPY or think the Loonie is in for a deeper pullback before extending its gains?
Look out for a bit of bullish momentum before you jump in. It may happen at current prices, the lower Fib levels, or the 100 and 200 SMAs. Or, you know, never.
Whichever scenario plays out, make sure you got the best trading plans you can make and that you stick to them when taking your trades!