The place my trend-trading associates at?
Y’all are in for a deal with immediately as a result of we’re taking a look at brief AND long-term yen developments.
Try EUR/JPY and CAD/JPY’s charts!
Yoooo do you bear in mind the pullback commerce that we noticed a couple of days again? Nicely, the bears have taken management once more and now EUR/JPY has made new month-to-month lows!
However that’s not why we’re taking a look at EUR/JPY immediately. See, the bulls have gained sufficient floor that the pair has clawed its method again up from the 128.00 lows to its present 129.25 zone.
As you possibly can see, the euro’s present ranges line up with a retest of the 100 SMA and a key help from final week. As our lady Olivia Rodrigo says, “Do you get deja vu?”
Shorting at present costs is your greatest wager in case you consider that EUR/JPY can nonetheless prolong its losses or at the least revisit its November lows.
For those who’re satisfied that the euro will see an upside reversal towards the yen THIS TIME, then you possibly can arrange lengthy trades above the 200 SMA resistance and intention for inflection factors like 130.00 or 131.50.
I do know y’all have been taking a look at CAD/JPY slowly however certainly following an uptrend because the begin of 2020 so I’m fairly assured that you just’ve additionally noticed this pullback play.
For those who missed the memo, then you need to know that CAD/JPY is buying and selling close to 90.50 that marks the 38.2% Fibonacci retracement of the most recent upswing and is close to Could’s damaged highs.
Bulls who’re taking cues from the lowkey bullish divergence can work with lengthy trades at present ranges with 2021’s highs as your preliminary targets.
Unsure about additional positive factors for CAD/JPY or suppose the Loonie is in for a deeper pullback earlier than extending its positive factors?
Look out for a little bit of bullish momentum earlier than you soar in. It might occur at present costs, the decrease Fib ranges, or the 100 and 200 SMAs. Or, you realize, by no means.
Whichever situation performs out, be sure you obtained one of the best buying and selling plans you may make and that you just keep on with them when taking your trades!