Wassup? Are you on the lookout for short-term setups on the yen?
If ya are, then check out what I have for CHF/JPY and CAD/JPY in today’s intraday charts update.
Back on Monday, we had two scenarios on CAD/JPY. And one of ’em was to look for opportunities to long, since we wuz expecting support at 85.30 to hold. And as y’all can see, 85.30 did hold.
However, we wuz only gunning for 86.00, since our expectations wuz that the descending channel would hold. But as y’all can see, the pair surged all the way up to just under 0.8670, so give yo self a pat on the back if you was able to ride that all the way. If you did, then I have to admit that you got game, dawg.
Moving on, the pair began trading sideways just under the 86.70 handle. And in the process, what looks to be a bullish flag has formed. And there’s a good chance that the pair could go higher. For one, price has been closing above them moving averages, which implies strong bullish interest.
Another is that stochastic is climbing back up without ever reaching oversold territory, which is also a sign of strong bullish interest. Anyhow, the height of the flag and its “pole” is ’bout 140 pips, so if the pair does move higher, then it may have enough steam to move for the same amount.
Just keep a close eye on how the pair reacts to the areas of interest at 87.20 and 87.60, a’ight? Oh, just note that there’s a small chance that 86.70 may serve as resistance. And them bears may then try to push the pair lower back to 86.00. You may therefore wanna prepare for such a scenario as well.
We originally had a rectangle pattern for CHF/JPY back on January 11. And back then, the pair was close to the rectangle’s support at 113.80, so we wuz lookin’ to trade the range by looking for an opportunity to go long.
Unfortunately, that plan was whack since the pair decided to stage a downside breakout instead. Oh, well. Just keeping it real, cuz.Anyhow, once we take the most recent price action into account, we can see that the pair has formed that there descending channel. The pair is currently close to the channel’s resistance area, so we be lookin’ for opportunities to go short.
If 113.80 holds, then them bears would likely be gunning for the minor psychological level at 112.50, a price area with significant market interest in the recent past. The channel’s support area is below that, though, so the pair could potentially go lower still.
However, the pair seems really reluctant to push away from 113.80, so you may wanna prepare for an upside channel breakout scenario just in case.
And if such a scenario plays out, then bulls will likely be shooting for the significant resistance level at 115.20. In any case, just make sure to practice proper risk management, a’ight? Peace! I’m out!