Word up, dawg! If you’re lookin’ for setups on the yen, or if retracement setups are your thing, then you may wanna check out today’s intraday charts update ‘coz I’ve got a couple of retracement setups on CHF/JPY and CAD/JPY.
CHF/JPY has been trending higher recently. However, the pair encountered resistance at 111.90 and was forced to retreat, which gives us a retracement setup to play with.
And if we apply our handy Fibonacci tool, we can see that the pair just bounced off the 38.2% Fibonacci retracement level, which lines up rather well with the area of interest at 110.60.
Y’all may therefore wanna start decide whether or not it’s worth it to jump in with a long. And all the more so, given that stochastic is pointing back up again and is about to leave oversold territory.
If you do decide to go long, then you may wanna keep a close eye on the major psychological level at 111.00. If the pair fails to move higher past 111.00, then that may be a hint that bears are gearing up to push the pair lower.
And if that happens, then you may therefore wanna start thinking about a potential downside scenario, especially if the pair moves lower past 110.20.
But if the pair moves higher past 111.00, then that means that bulls will likely be gunning for 111.90 and then 113.20 after that.
There’s also a Fibonacci retracement setup on CAD/JPY’s 1-hour chart, as y’all can see above.
However, we probably shouldn’t have a strong bullish bias on this one since the pair has been closing below the two moving averages. Also, the moving averages appear to be moving closer together for a potential cross-over into a downtrend mode.
Anyhow, we can see that the pair bounced off the 85.00 major psychological level, which is just below the 61.85 retracement level. And presently, the pair is making its way back up. However, the pair still needs to clear the areas of interest at 85.50 and 85.9o before it’s safe to say that bulls are likely winning out and are likely shooting for 87.10.
But as mentioned earlier, the pair has been closing below the moving averages. And that’s a sign that bearish interest is strong.
So if resistance forms at 85.50 or 85.90, then you may wanna consider the possibility that bears may win out and push the pair lower to 83.90.
In any case, just remember to practice proper risk management as always, a’ight?