Dear traders,

Last week I shared with you my thoughts on USDCAD.

I am still waiting for the pair to start its climb.

Looks like this might happen this week.

There was a pin bar on the 4H chart. I would have traded it if it did not occur on Friday.

Since I do not like to start building a position over the weekend, I decided to wait until Monday.

After market open, I will decide if I will initiate a long position.

USDJPY Trading Analysis

Today, I have also noticed that USDJPY has bounced off strongly an old demand zone.

There was also a bullish engulfing pattern on the daily chart as you can see from the screenshot above.

On top of that, there was pin bar on the weekly chart:

All of these signs are boding well for the bulls.

I am expecting to see a lot of activity around USDJPY in the weeks to come.

Might consider opening a long position this week, if I see the price forming a bullish candlestick after a small retracement to 105.50.

If we see a clear break above the 106.00 handle, then 110.00 is the next potential resistance area.

Happy Trading,

Colibri Trader

P.S.

Have you read my recent article on Swing Trading?