Good day traders,
Welcome to the third week of the month.
Going through my charts, I noticed one common chart pattern across the JPY pairs, is the pennant.
I was actually planning to title this article “THE RETURN OF THE PENNANTS” (lol).
Without wasting any more of your time, let’s hit the charts.
1. CAD/JPY
The CAD/JPY on the 4 hours chart broke support level 83.577, after which the bears lost steam.
After price hit support level 82.379, the Bulls spent the whole of last week, taking price to a key resistance level (83.954) which rejected price and also broke the present support level.
This coming week will determine how valid the breakout of support level 83.577 is.
If the breakout is valid, price may most likely start another bearish journey to support level (82.850) and if NOT.
We may see the Bulls hit the next possible resistance level (84.457).
2. GBP/JPY
GBP/JPY, on the 4 hours chart, has price waiting at a key resistance level (148.805).
Two things can happen here:
- A breakout of resistance level 148.805, and price locating its next resistance level (152.687) or
- Price bowing down to resistance level 148.805, and retracing it’s steps back to support level 145.689.
3. CHF/JPY
On the daily chart, we can see CHF/JPY giving us one clear pennant, and price seem to be losing steam as it approaches resistance level (111.672).
Friday candlestick closed with a Doji. Patience will be needed to see what the Monday daily candlestick close will present to us before deciding to either sell the pair using its next support level (110.452) as our profit or
Wait for a bullish breakout of the present resistance level, before buying this pair, and using the next resistance level (112.940) as our profit target.
4. EUR/USD
EUR/USD on the daily time frame, is struggling to hit its next resistance level (1.13670).
Patience would be required of us, in order to monitor this pair during the week, to see if the bears will take price back to support level 1.11851 after bouncing off resistance level 1.13670
or
If the bulls are strong enough to break resistance level 1.13670 and form a new resistance level (1.14205).
In all of these setups, we would be needing one key ingredient… That is PATIENCE.
We are done with our weekly analysis.
Kindly comment below, we would love to know your view on our weekly analysis. Also, we would appreciate if you share and subscribe to our blog. By so doing, you will get our daily market analysis.
