AUD/JPY has been channeling higher throughout October, and it looks like we’re about to have another chance to play the rise from the bottom. Right now, the rising bottom trendline should line up with the major psychological level of 79.00, which combined, makes a pretty good argument for potential support once again. Look out for a retest and if it breaks either way, the potential reward-to-risk is well worth checking out.
CAD/JPY took a dive harder than Trump’s poll numbers in the last few trading sessions, breaking the recent trend of higher “lows.” It looks like the pain has stopped for Loonie bulls, but is the bounce another opportunity for sellers to take further control? If so, a potential resistance area could be the area that overlays the Fibonacci retracement area on top of the breakdown levels and the moving averages; a trio of technical arguments certainly improves the probability of resistance forming.
Last but not least, USD/JPY is once again on the top of our watchlist for its breakout potential. The pair has formed a not-so-textbook rising triangle pattern on the one hour chart in October, and it is currently testing the strong resistance area between 104.00 – 104.50. If it can break above and hold, it’s highly likely we’ll see a rush of buyers to take this pair higher, with the next likely resistance around 107.00, the last longer-term swing top.
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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.
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