Can you believe it’s already the middle of the week?
Today we’re looking at CAD because it’s hitting very interesting inflection points against GBP and JPY.
Think you can make pips from CAD/JPY and GBP/CAD’s inflection point reversals?
CAD/JPY: 4-hour
CAD/JPY has turned its frown upside down since the middle of the month as it traded 300 pips higher from its 85.00 lows.
Have Loonie bulls run out of steam though? CAD/JPY is having trouble breaking the 88.00 major psychological handle and range resistance that the bears have been defending since July.
If you think that CAD/JPY is definitely ready for a downswing, then you can start loading up your short positions or wait a bit for some bearish momentum.
The 85.00 lows is a good target if you’re confident in the Loonie’s future weakness but you can also set profit targets closer to the mid-range and SMA areas.
Feeling bullish on CAD/JPY? No worries, an upside breakout is still possible.
Just make sure that the Loonie has clearly broken above 88.00 before you make any plays for May’s highs!
GBP/CAD: Daily
The pound just had a terrible day against the Loonie!
GBP/CAD is now trading around 1.7175, which marks a range resistance that pound bulls and bears have been paying attention to since November 2019. That’s almost two years ago!
Bulls who are looking at the lowkey trend line support and bullish divergence on the daily chart can wait for GBP/CAD to trade and stay above 1.7200.
The 1.7600 range resistance is a good level to target but it really depends on how strong the next upswing will be.
Pound bears can also take advantage of the current downswing by shorting at current prices and placing stops just above the SMAs or the 1.7300 potential resistance zones.
The 1.6800 long-term range support would yield good risk ratios but you can also set your targets at key areas of interest just above the bottom of the range.
