Let’s begin our stroll down memory lane with that there channel setup for USD/JPY that we identified back on Monday. And if y’all can still recall, an upside move was one of our scenarios back then. Well, price did move about 150 higher from last we saw it, so give yourself a pat on the back if you were able to find an opportunity to go long. And for today’s play, the pair seems to have found resistance at the 101.80 handle, which is close to the channel’s resistance area. Y’all therefore better start looking for opportunities to go short. Stochastic is still close to the oversold area, though, so there’s also a small chance that bulls may attempt an upside channel breakout.
Next, we were really bullish on AUD/JPY and our bullish bias paid off because that there ascending channel is still intact and the pair even moved over 130 pips higher from last we saw it back on Monday. Heck, the pair even tried an upside channel breakout. The breakout move was faded, though. Anyhow, the pair is currently near the channel’s resistance area. Also, stochastic is already signalling overbought conditions. There’s therefore a better-than-average chance that sellers will start coming in to push the pair lower sooner or later. However, do note that looking for shorting opportunities here is a counter-trend setup, so more conservative forex traders may wanna sit this one out.
Finally, we didn’t have a clear bias on CHF/JPY back on Monday, but an upside channel breakout was one of the scenarios we were looking at. And from the looks of it, the pair tried to respect the descending channel but ultimately invalidated it by breaking higher. In the process, a new ascending channel has formed. And recently, the pair bounced higher after touching the 103.80 handle, a price area with significant market interest, even on the higher time frames. The pair is still at the mid-channel area and stochastic is still just moving away from oversold territory. There’s therefore a chance that the pair may still move higher.
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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.