Welcome to midweek trading, fellow market junkies!
I’ve got these USD/JPY and Cardano (ADA/USD) consolidation setups on my radar today.
Think we’ll see big breakout moves soon?
This pair seems to have settled back inside its short-term range, following that crazy “yentervention” last week.
Will the rectangle pattern keep holding, though?USD/JPY is already hanging out at the top of its range near the 145.00 major psychological mark, and a break higher could confirm that more gains are in the cards.
I’d look out for a rally that’s at least the same size as the range or roughly 350 pips if that happens!
Just be careful when jumping in a long position since Stochastic is already reflecting exhaustion among buyers. Turning lower would mean that bearish vibes are returning and might be enough to take USD/JPY back down to nearby support levels.
The 100 SMA is above the 200 SMA for now, suggesting that resistance is more likely to break than to hold. However, moving averages might not be so reliable during market consolidation.
Cardano (ADA/USD): 1-hour
Looking to trade crypto?
Here’s a simple chart pattern you should keep tabs on.ADA/USD has formed lower highs and found support around the 0.4350-0.4400 zone, creating a descending triangle on its hourly time frame.
Price is currently testing the triangle bottom while Stochastic is pulling up from the oversold region, hinting that another bounce to the top might follow.
If buying pressure is strong enough, Cardano might even bust through the triangle resistance and go for a rally that’s the same size as the formation.
On the other hand, if the crypto market stays in the red zone for the most part of the week, ADA/USD could be in for a breakdown and major selloff!
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