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Technical Trades: EUR/JPY, AUD/JPY, CAD/CHF

By Tomasz WisniewskiForexFeb 04, 2020 07:21AM ET
www.investing.com/analysis/technical-trades-eurjpy-audjpy-cadchf-200504242
Technical Trades: EUR/JPY, AUD/JPY, CAD/CHF
By Tomasz Wisniewski   |  Feb 04, 2020 07:21AM ET
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Traders are slowly getting bored with the coronavirus. In financial media, this topic is mentioned less frequently. This allowed a bullish correction on indices and a bearish one on safe heavens. Today, we will show you long-term situation on the three currency pairs, where we could spot interesting trading opportunities.

The first one is the EUR/JPY, where the recent pursuit of safe havens increased the appetite for the yen and triggered negative sentiment.

It all started with the bounce from the 122.8 and the upper line of the wedge. Wedge is a trend continuation pattern, so it was naturally promoting the breakout to the downside. It happened on the 24th of February and after that, the price created a small rectangle. This rectangle is promoting a further slide and this is our current outlook on this instrument.

A similar setup can be found in the AUD/JPY, where the price also bounced from the horizontal resistance and later broke the lower line of the correction pattern. In this case, it was a flag. What is different is the price movement after the breakout. On AUD/JPY the price dropped like a rock, without a pause like on the EUR/JPY. Well, Australian dollar is simply much weaker right now. Today, the price tries to initiate the correction but we are not convinced about the durability of this movement.

Last week was absolutely crucial for the CAD/CHF and you need to look on the weekly chart to understand why. After few weeks of a decline, the price eventually broke the lower line of the massive symmetric triangle pattern. In theory, that can start a new long-term down trend on this instrument. As long as we stay below the triangle, the sentiment remains negative.

Axiory Analysis
Technical Trades: EUR/JPY, AUD/JPY, CAD/CHF
 

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Technical Trades: EUR/JPY, AUD/JPY, CAD/CHF

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