CAD/JPY has been trading higher while trapped inside an ascending channel, but price has recently been bouncing up and down between the resistance and mid-channel area. However, bullish momentum seems to be weakening and stochastic is already pointing down and moving away from overbought territory. In addition, the moving averages are just about to cross-over into downtrend mode, so perhaps it’s time for the pair to move back down to test the channel’s support area.
Price has been grinding lower inside a rather messy-looking descending channel since late February. Presently, price is at the channel’s support area while stochastic is pointing up and parting ways with the oversold region, so perhaps forex traders who are bullish on the pair may start nibbling soon. This is a counter-trend setup, though, so conservative forex traders may wanna sit this one out. And as usual, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
As y’all can see, the pair just recently bounced of that there ascending channel’s support area, but seems to be meeting sellers at the mid-channel area, so those of ya who missed the ride may get a chance to go long if price does go back down to test the channel’s support area. Do note that stochastic is pointing down and moving away from the overbought region, however, which may mean that forex traders who are bearish on the pair are already in control. It also means that there’s a small chance of a downside channel breakout, especially if the bears overwhelm the bulls, so do be careful.
Forex Chart Settings:
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals