Talking Points:
- JPY crosses beaten down, looking for long opportunities
- CADJPY trading near multiple degrees of support
- If support zone around 9400 holds, looking for 9750-9850 area
The sharp sell-off in the JPY cross pairs has become extended, and has me focused on opportunities from the long side. When looking for contrarian trades after sharp one-way moves, I like to look for pairs which are trading near a confluence of support or resistance levels. The chart below of CADJPY shows 3 degrees of up-trend/horizontal support in conjunction with channel support from the December high. The horizontal support, ~9400, is an especially big level going back nearly a year. (Overnight low was 9410).
CADJPY Daily: Mar ’14 – Present
---Written by Paul Robinson
To contact Paul, you can email him at instructor@dailyfx.com
