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Both CAD/JPY and EUR/JPY are sitting on support levels at the moment, so we might be in for a quick bounce.

Or are breakdowns in the cards?

EUR/JPY: 4-hour

EUR/JPY 4-hour Forex Chart

EUR/JPY 4-hour Forex Chart

Higher lows and higher highs… Why, that’s an ascending channel right there!

EUR/JPY is forming a fresh uptrend on its 4-hour time frame and is currently testing the bottom of the channel. Will we see a continuation of the climb?

Technical indicators are suggesting so, as the 100 SMA is above the 200 SMA while Stochastic is pulling higher.

If bulls stay in control, EUR/JPY could make its way back up to the top of the channel at the 151.00-152.00 area or at least until the mid-channel area of interest at 148.00.

Just be careful since the gap between the moving averages is narrowing, which means that a bearish crossover might take place soon.

If that happens, euro bears could regain the upper hand and go for a break below the channel support at 144.00.

CAD/JPY: 4-hour

CAD/JPY 4-hour Forex Chart

CAD/JPY 4-hour Forex Chart

Remember that CAD/JPY descending triangle we were watching a while back?

Well, the pair already tumbled back down to the bottom of the chart pattern and is finding some support.

Stochastic seems to be suggesting that a return in bullish pressure is in order, possibly sending the pair back up to the triangle top near the 108.00 mark.

However, the moving averages might be bracing for a downward crossover, which could spur a break lower. If that happens, CAD/JPY could tumble by the same height as the formation.

That’d be close to 500 pips yo!

In any case, better keep your eyes peeled for more directional clues from Japanese candlesticks around current levels.