Dollar bears gather ’round! USD/JPY is having trouble trading above 104.00, which isn’t surprising since the closely watched level is also near a descending channel resistance and the 100 SMA on the 1-hour chart.
The cherry on top of this sweet setup sundae is Stochastic flirting with them overbought levels.
Can USD/JPY extend its downtrend in the next few days? Shorting at the first signs of bearish momentum is your best bet if you’re looking to jump in on the downtrend.
For the dollar bulls, you’ll want to wait for USD/JPY to trade above the channel and the 100 SMA before you aim for key inflection points like 106.00 or 107.75
Is USD/CAD ready for an uptrend?
Based on the higher highs and higher lows on the 1-hour chart, there are at least some traders who are game.
USD/CAD has just found support at the 1.2700 major psychological handle which lines up with a channel support. Not only that, but the 100 SMA has also just crossed above the 200 SMA!
Buying at current levels would still give you a good reward-to-risk ratio especially if you’re eyeing January’s highs near 1.2850 as your target.
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