If you’re taking a break from dollar-related plays, then today is your lucky day!
CAD/JPY looks ready to extend a downtrend while NZD/JPY is hitting a range resistance.
Think you can make pips from their 4-hour setups?
A few days ago, we clocked CAD/JPY possibly turning lower from a 61.8% Fib retracement and the 100 and 200 SMAs.
Fast forward to today and it looks like CAD/JPY is taking its time near the channel resistance. While it traded higher than the 61.8% Fib, its gains are also capped at the 87.50 zone.
Is the Loonie ready to extend its downtrend? Bearish momentum below the dynamic inflection points could lead to a dip to the 85.00 July and August lows.
Meanwhile, a push above last week’s highs could result in a reversal that would bump CAD/JPY to the 88.50 or even the 90.00 previous areas of interest.
I don’t know if you’ve noticed, but NZD/JPY is knocking on a range resistance that the bears have been successfully defending since July.
Let’s see if a bearish divergence on the 4-hour chart will inspire the same bearish move that we saw in late July to early August.
Shorting at the first signs of sustained selling would give you a good risk ratio especially if NZD/JPY drops to the 76.50 mid-range zone or the 74.70 August lows.
But if Kiwi bulls find more friends and bust NZD/JPY above August’s highs, then you gotta be ready to ride a possible trip to 78.50 or 79.00.