CAD/JPY Market Watch
9/04/2020 08:16:00 AM
Well, with an extremely light calendar ahead, the odds are pretty good this theme will run through the rest of the U.S. session, and probably through the upcoming Asia session, barring a surprise news catalyst.
So, the odds are in favor of the bears at the moment, but a rising ‘highs’ pattern and previous support area around 80.50 could be a problem. Also, stochastic is signaling potential short-term oversold conditions, so it may be a good idea to either wait for a bounce up to the 81.00 handle and bearish reversal patterns to form before considering a short.
Or if you think this is just the beginning of a bigger move, watch for a break of the rising ‘lows’ pattern before considering a short swing position as it could draw in higher timeframe traders.
For the bulls, the rising ‘lows’ pattern could draw in short-term traders who may take profit from their shorts, or swing traders who feel today is just a pullback in a longer-term trend. The data was mixed between the leading and lagging economic updates, but arguably more net negative to lower the odds of a risk rebound soon. So if you’re bent on getting in long, wait for bullish reversal patterns at 80.50 before considering a long position. Tags: Technical Analysis