Who’s up to trade the yen pairs today?
The reversal setup on GBP/JPY and the pullback opportunity on CAD/JPY look ready to play out!
Guppy must be exhausted from its climb, as the pair is forming a double top pattern on the 4-hour chart and might be ready to break down.A move below the neckline around the 153.00 handle could confirm that a downtrend is underway, and this might last by the same height as the chart formation or around 500 pips.
Stochastic is hinting that pound bears have the upper hand since the oscillator is already on the move down. And even though the 100 SMA is above the 200 SMA, the forex pair is trading below both indicators which are also on the move down.
If pound bulls continue to defend support, on the other hand, GBP/JPY might make its way back to the tops near the 158.00 major psychological mark.
Here’s a classic break-and-retest setup for y’all!CAD/JPY recently busted through the ceiling around the 91.00 major psychological mark, then climbed to the 92.00 mark before retreating.
Price is now testing the broken resistance level, which appears to be holding as a floor since it lines up with the 61.8% Fib. If this is enough to keep losses in check, CAD/JPY could make its way back up to the swing high and beyond!
Technical indicators support a bounce, with Stochastic reflecting exhaustion among sellers and starting to turn higher. Plus, the 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside.