Dollar traders gather ’round!
Whether you’re into short-term setups or you like your dollar trades done in longer-time frames, I got you covered with setups on USD/JPY and USD/CAD.
Check them out!
USD/JPY: 1-hour
USD/JPY fell sharply late last week but it looks like the bulls have found momentum since the pair has recovered from its 113.50 lows to trade just under the 115.00 mark.
Can the bulls maintain their mojo this week?
USD/JPY’s uptrend may hit a snag as it encounters the 1-hour chart’s 200 SMA as well as a trend line resistance that’s been around since the start of the month.
If USD/JPY’s bullish momentum takes the pair comfortably above the trend line and the 115.00 zone, then we might see a retest of the 115.50 or 116.00 previous inflection points.
Of course, it’s also possible for dollar bears to wake up and drag USD/JPY back to its January downtrend.
Look out for red candlesticks and momentum below the trend line, which could take USD/JPY back down to the 114.35 or 113.50 previous areas of interest.
USD/CAD: Daily
I don’t know about you, but I’m feeling like 2022 hasn’t been a good year for USD/CAD.
After getting rejected at 1.2900 in December, the dollar has fallen further to retest the 1.2500 zone that’s closer to a trend line support on the daily time frame.
Think USD/CAD will maintain its months-long uptrend? Stochastic is on the bulls’ side with an “oversold” signal while current prices are also being supported by the 200 simple moving average.
Bulls who are confident that the trend line and 200 SMA support will hold can buy at current levels and target the ascending triangle‘s resistance near 1.2900.
If you’d rather sell the dollar against the Loonie, however, then you can also wait for a clear break below the trend line before exploring potential targets like 1.2325 and 1.2450.
