Chart Art: Trend Following Setups on USD/JPY and CAD/JPY

Chart Art: Trend Following Setups on USD/JPY and CAD/JPY

Welcome to that special time of the forex week we call Friday!

If you’re looking to bag your last-minute pips, then you’ll definitely want to check out USD/JPY and CAD/JPY‘s potential trend retracements.

Get them while they’re hot!

USD/JPY: 1-hour

USD/JPY 1-hour Forex Chart
USD/JPY 1-hour Forex Chart

USD/JPY is about 20 pips away from its day’s low, which lines up with the 200 SMA and trend channel support that hasn’t been broken since early May.

Can the bulls extend the dollar’s uptrend? Buying at current levels would still give you a decent reward-to-risk ratio especially if you aim for May’s highs near 108.00.

If you’d rather short the dollar against the yen, however, then you’ll want to wait until the pair clears the 200 SMA support and then aim for possible moves down to the 107.00 or 106.85 areas of interest.

Watch this one closely!

CAD/JPY: 4-hour

CAD/JPY 4-hour Forex Chart
CAD/JPY 4-hour Forex Chart

Not a fan of the dollar? That’s aight, I got yo back!

CAD/JPY is flirting with the 76.50 area, which is near a broken triangle resistance level on the 4-hour time frame.

If that’s not enough to make you look at the setup, then you should also know that CAD/JPY’s current levels line up with an ascending trend line AND 100 and 200 SMA support areas.

A stop below the trend line support and targets around the 77.80 could make for a good play if you think we’re looking at a break-and-retest scenario for CAD/JPY.

If you’re not convinced that the Loonie can gain against the yen, however, then you can also wait for a break below the current trend line support and then aim for the 75.50 previous support once the trend line breaks.

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Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line

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