TECHNICAL ANALYSIS


FX


Chart 8: USD/JPY monthly


In the monthly chart (see Chart 8), it had looked so promising for bulls in 2014, when the price shot up above the 16 year downward sloping trend line in a bullish breakout. However the rally only lasted a year before the price tumbled back to retest what was then an 18 year trend line. Bulls would have been very excited to see a base form at this support level and a strong push higher. However, we got nowhere


near the 2015 high on this rally and peaked in early 2017.


We are currently testing the only support of any relevance in the form of


average at around 105.70. It looks likely that this will break eventually with a break below the current low of 104.55 acting as confirmation of a move towards the 2016 lows of 100.07/99.08 mentioned above.


the 200 month moving USD/CAD


The USDCAD has been trading in a gently downward sloping channel for two years, as you can see in Chart 9. Since the beginning of February, the


Note how we also meet the blue 100 month moving average line in the same area, so it will be up to bulls to see if they can engineer a strong bounce from here


Chart 9: USD/CAD Daily


FX TRADER MAGAZINE April - June 2018 21


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