I’m all about the yen pairs this week as I keep my one good eye on this potential inflection points on EUR/JPY, CAD/JPY, and NZD/JPY. Check ’em out!
First up is this neat break-and-retest situation shaping up on the daily time frame of NZD/JPY. The pair looks prime for a correction to the area of interest around the 38.2% to 50% levels near the broken trend line, which might now hold as support.
Stochastic is just halfway on its move down from the overbought zone, indicating that Kiwi bears could stay in control for a bit longer. A larger pullback could last until the 61.8% Fib, and if any of these levels hold, a bounce to the swing high at 78.86 could follow.
Next up is this simple descending channel forming on the 4-hour chart of CAD/JPY. Price is bouncing off the bottom and might be eyeing the channel resistance around the 86.50 minor psychological mark for a pullback.
However, the 50% level around the mid-channel area of interest already seems to be keeping gains in check while stochastic is heading lower to signal the presence of bearish pressure. In that case, a move to the swing low could be underway from here!
Lastly, check out this simple range setup on the short-term chart of EUR/JPY. Price just bounced off the floor after forming a tiny double bottom and might be on its way up to the range resistance at the 129.00 major psychological mark.
Stochastic is turning lower, however, which means that sellers are regaining the upper hand and might push for another test of the bottom around 127.80. A break below this level could trigger a slide that’s roughly the same height as this rectangle pattern, so keep your eyes peeled!
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