Welcome to a brand-spankin’ new trading month!
Major yen pairs are falling like there’s no tomorrow but that just means more opportunities for USD/JPY and CAD/JPY traders.
What do you think of these setups?
CAD/JPY: 4-hour
CAD/JPY had a very strong second half of September, climbing by more than 300 pips until the bears said “Ait, that’s enough.” at 88.30.
The pair looks ready to hit the 87.00 psychological handle, which isn’t too far from the 38.2% Fib retracement of the last upswing, the 100 and 200 SMAs, and the descending channel resistance that CAD/JPY had recently broken.
Will we see a bounce at 87.00? CAD/JPY has a few more pips to go before reaching the level so y’all have time to design trading plans around a possible break and retest play.
If the Loonie bounces from the 87.00 zone, then we could see CAD/JPY retest its September highs and maybe even visit the big 90.00 inflection point.
If CAD/JPY goes back down to its downtrend, though, then you also gotta be ready to trade a revisit of September or even August’s lows.
USD/JPY: Daily
Countertrend traders gather ’round!
USD/JPY had been printing strong green candles the whole week until it popped up a bearish engulfing pattern almost right at the 112.00 psychological level. Yikes!
Bears who are anticipating a reversal or at least a deep retracement can take comfort in Stochastic‘s overbought signal.
Y’all can scale in at current levels and short the dollar until it hits potential support levels near 110.70 or 110.00.
Not feelin’ like selling the dollar? You can wait until USD/JPY starts printing bullish candlesticks again and trade the uptrend until the dollar revisits its September highs.
