CHF/JPY has been making higher troughs recently while respecting resistance at the 109.20 handle, forming an ascending triangle in the process. However, the pair just blew past resistance at the 109.20 handle as I’m writing this. And if the upside breakout is sustained, then the pair could potentially move higher for about 190 pips since that is roughly the height of the chart pattern. Stochastic is about to reach overbought territory, though, so there’s a chance that the breakout may lost steam and fade out.
As y’all can see, price has been ranging between resistance at 104.80 and support at 103.60 since last week, giving us a 120-pip rectangle pattern to play with. Price is currently milling about just below the rectangle’s resistance area, so y’all better start looking for opportunities to go short if you plan to trade within the range. Just note that stochastic is still pointing up, so forex traders who are bullish on the pair may still be in control. Stochastic is about to signal overbought conditions, though, so bears may start jumping in soon enough.
After a trending lower since the end of May, EUR/JPY has been consolidating while tapering into point in the past few days, forming into a rather messy-looking symmetrical-ish triangle pattern. A symmetrical-ish pattern means that bears and bulls are duking it out, but neither side is clearly winning, which means that the pair could breakout in either direction. And in case a breakout does occur, the resulting rally or selloff could last for 240 pips, based on the height of the pattern. In any case, just make sure to practice proper risk management, alright?
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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.