CAD/JPY 1H Chart Emerging Pattern: Channel Up

by Admin

EUR/JPY 1H Chart

Emerging Pattern: Channel Up

EUR/JPY has formed a Channel Up pattern on the 1H chart. The pattern has 65% quality and 68% magnitude in the 99-bar period.

The pattern began on 17th of April when the pair peaked to 129.75; at the moment it is trading at 129.48. Trading volume seems to be decreasing lately. Technical indicators on aggregate point at appreciation of the pair on 1H and 1D horizons suggesting it should continue moving towards the pattern’s resistance. Long traders could focus on the Bollinger band at 129.75, daily pivots at 130.17 (R1) and 130.84 (R2) and pattern’s resistance/daily pivot (R3) at 131.62/99.

Technical indicators on aggregate point at depreciation of the pair on 4H horizon suggesting we might see a minor bearish correction. Short traders could focus on the 20-bar SMA at 129.24, daily pivot (PP)/200-bar SMA/Bollinger band at 129.02/128.78, daily pivot (S1)/pattern’s support at 128.39/35, 20-day SMA at 127.81 and daily pivots at 127.20 (S2) and 126.52 (S3).


CAD/JPY 1H Chart

Emerging Pattern: Channel Up

The Japanese Yen is depreciating across the board, thereby forming bullish set-ups in many of its crosses. CAD/JPY is not an exception from this pattern, having a Channel Up on a 1H chart, but there is a distinct difference between the sentiments towards this particular currency couple and the others Yen pairs among the SWFX traders. Unlike in most of the cases, the Yen here is expected to outperform its counterpart despite the general tendency of the Asian currency to lose its value.


GBP/JPY 1H Chart

Emerging Pattern: Channel Up

Being that the recent price action was defined by two parallel upward-sloping trend-lines, we are inclined to believe that GBP/JPY will continue the rally, since technical indicators do not contradict this development of events and are also giving ‘buy’ signals. Moreover, an overwhelming majority of market participants are waiting for higher levels—73.5% of them are long on the pair.


AUD/JPY 1H Chart

Emerging Pattern: Channel Up

Recently the currency pair has bounced off the rising support line and is currently headed towards the upper edge of the channel at 103.60. However, it will have to overcome a number of resistances during its journey, including the 200-bar SMA that has already denied the first attempt of AUD/JPY to step above 101.98.