For our first forex chart pattern, we’ve got that there ascending channel for NZD/JPY’s 1-hour time frame. As y’all can see, price is currently making its way higher towards the channel’s resistance area, so y’all better start looking for opportunities to go short. Shorting at the channel’s resistance area is a counter-trend play, however, so more conservative forex traders may wanna sit this one out for now. For the more aggressive forex traders, just know that stochastic is already indicating overbought conditions, so bulls may be running out of steam soon.
Is GBP/JPY gonna make a downside move? Well, there’s a better-than-average chance that the pair may move lower since a rising wedge pattern has now formed. If the rising wedge is validated by a downside breakout, then the pair may have enough momentum for a 340-pip move, based on the chart pattern’s height. Our technical indicators favor further moves to the upside, though, since stochastic is pointing up after briefly visiting the oversold territory while the moving averages are in uptrend mode, with the 100 SMA seemingly acting as dynamic support. In any case, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
Forex traders who are bullish on CAD/JPY have been trying to push the pair higher past resistance at 85.20, but the bears are well entrenched, so the pair got rejected every time. The bulls are relentless, though, and so higher troughs have been formed, creating a large ascending triangle in the process. An ascending triangle is a bullish chart pattern, so our directional bias is to the upside, although a break in the opposite direction is always a possibility. Anyhow, a breakout move in either direction could last for around 280 pips since that is roughly the height of the chart pattern. Stochastic is pointing back up without reaching the oversold area, though, which may mean that bullish interest is strong. Also, the moving averages just recently crossed-over into uptrend mode.
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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.