I’m trying something a little different today. I’ve made the charts a little larger so that you guys can click on them and get a better perspective. Once open you can click anywhere on the chart to see the next one in this series.
The market gave us some great price action to start the week across most of the Yen pairs. There are several setups that could play out in the next 24 hours as well as some key levels to watch throughout the week, so let's get right to it.
AUDNZD finally pushed through channel resistance last week at 1.09. I'll be keeping an eye on this pair throughout the week to see if the market can find its way back to this key level to retest it as support.
I posted about the CADJPY bullish pin bar earlier today. It was an interesting setup because the tail of the pin bar touched almost exactly on trend line support. It isn't often that you get a trend line this clean.
Just as I figured, the next 4 hour close had some trouble getting through resistance at the 94 level. This is the level to break in order for this pair to rally further.
If the market does break this level, I'll post another chart showing the next resistance level I'm watching above the 94 area. Don't worry, it's a good 70 pips away from where we're currently trading. 😉
A channel doesn't get much cleaner than this one on GBPJPY. I posted about the bullish pin bar at support last week. I had some initial concerns, but this trade setup has worked out beautifully.
Although we're seeing resistance come into play around 171.50, forming a bearish 4 hour pin bar, I'd be cautious about a short position from here. A look at the daily chart shows why. Although the pair lost some ground late in the day, GBPJPY showed a lot of bullish momentum throughout the day to include a fairly strong close.
I wouldn't be surprised to see this level broken in the next 24 to 48 hours. Of course I could be wrong, but I'll sit this one out for now.
Following the "Yen" theme, we come to NZDJPY. This pair isn't a big mover like GBPJPY, but it can occasionally provide some nice levels to watch, such as the one below. I'll be watching the 86.70 area over the next 24 to 48 hours.
USDCAD was another big mover today, closing the day up 60 pips from the open. I'll be watching the 1.0885 area over the next 24 hours, but considering the momentum shown today I wouldn't be surprised if the market doesn't make it back to this level before moving higher.
One last Yen pair to finish out the day. USDJPY finally made up its mind today, closing the day up 60 pips from the open. We actually had two bullish pin bars coming off this trend line break as a warning signal that a big move might be in the works.
From here the next resistance level comes in at 102.60. However considering today's move, I think USDJPY is bound for a retest of the 103.20 trend line resistance from January of this year.