Partner Center Find a Broker

CHF/JPY: 1-Hour

CHF/JPY: 1-Hour Forex Chart
CHF/JPY: 1-Hour Forex Chart

Last Thursday, we found a breakout-in-progress on CHF/JPY’s 1-hour chart. But as I noted back then, the breakout needs a clean break past 111.80 to confirm it. Otherwise, chances are good that bulls will regroup and then try to push the pair back into the ascending channel. And well, that’s exactly what happened since the pair climbed over 150 pips since we last saw it. Not only that, the pair also broke past resistance at 113.30, indicating that bullish momentum is still strong.

Anyhow, the pair is still hugging the channel’s support area, so y’all better start looking for opportunities to go long. Just be careful, though, since stochastic is already signaling overbought conditions, which means that a downside breakout is a possibility. A downside breakout would have to go through 113.20 and 111.80, though, and bulls will likely be waiting there.

EUR/JPY: 1-Hour

EUR/JPY: 1-Hour Forex Chart
EUR/JPY: 1-Hour Forex Chart

EUR/JPY has been trending higher while bouncing up and down inside an ascending channel. Recently, however, the pair seems to have encountered strong resistance at the 122.80 handle. But at the same time, the pair is still close to the channel’s support area while stochastic is about to reach oversold territory. It’s therefore likely that we would be seeing a break sooner or later. The channel is well-respected and the moving averages are still in uptrend mode, so our main scenario is a break past resistance at 122.80. However, a downside channel breakout is also possible, so make sure to prepare for such a scenario as well. Oh, and make sure to practice proper risk management as well. Just note that if a downside breakout does occur, the pair needs a clean break past 121.10 before the channel breakout is confirmed. If the pair fails to break 121.10, then there’s a chance that the pair will climb back into the channel.

CAD/JPY: 1-Hour

CAD/JPY: 1-Hour Forex Chart
CAD/JPY: 1-Hour Forex Chart

CAD/JPY has been respecting that there ascending channel for over a month now. And presently the pair is making its way towards the channel’s support area after bouncing off the channel’s resistance area. Y’all therefore better get ready, since an opportunity to go long may present itself soon. However, you can’t see it on the chart, but resistance at 88.00 is actually very significant. And you can clearly see how significant it is by zooming out to the higher time frames or scrolling all the way back to April 2016, December 2015, and August 2015. And given that stochastic is already indicating overbought conditions, there is a chance that the pair may stage a downside channel breakout. Just keep an eye on 86.00 since that is also a price area with significant market interest, even on the higher time frames. Bulls will likely be entrenching themselves there.

Forex Chart Settings:

Slow Stochastic: 14, 3, 3
100 SMAs: Blue line
200 SMA: Red line

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.