A newly-minted rectangle pattern has emerged on CAD/JPY’s 1-hour chart, with resistance at 82.20 and support at the 81.00 major psychological level, which gives us a nice 120-pip trading range to play with. Price is currently gunning for the rectangle resistance area, but it’s already halfway there, so it’s up to you if you still wanna jump in. The up-move may not be over yet since stochastic just recently left the oversold region, but more conservative forex traders may wanna sit this one out for now.
Bears and bulls are fighting it out on GBP/JPY’s 1-hour chart, but neither side has a clear advantage, so a symmetrical-ish triangle pattern has formed. A symmetrical triangle pattern could break in either direction. And if a breakout does happen, then the resulting selloff or rally could last for about 600 pips, based on the height of the chart pattern. Probability seems skewed towards a potential upside breakout, though, since stochastic is signalling oversold conditions while the moving averages are in uptrend mode, with the 100 SMA apparently acting as dynamic support to boot.
That there is the updated chart of the descending channel that we identified in yesterday’s Intraday Forex Charts Update. Also, the pair went lower by as much as 120 pips since last we saw it, so give yourself a pat if you were able to hitch a ride. And for today, we’re playing that channel again. Things are a bit different, though, since price is currently at the channel’s support area, which happens to line up with the area of interest at 74.20, giving us two scenarios: (1) a bounce higher or (2) a downside channel breakout. Our technical indicators are mixed, so there’s no clear sign on which scenario will play out. As usual, just make sure to practice proper risk management, okay?
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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.