This article looks at how I see price action for 3 forex pairs: USD/JPY, CAD/JPY and USD/CAD.
Figure 1: “1 Month” charts of USD/JPY, CAD/JPY and USD/CAD.
From figure 1, I’ve used Fibonacci retracement (or Fib.) levels to get a simplified view of possible support and resistance levels.
The other 2 horizontal price levels nearest to current price are colored in red (for likely resistance) and blue (for likely support). Those additional price levels are drawn off from the “1 week” charts. It’ll be preferable that the 2 levels are also applicable on “1 Month” time-frame as seen from above.
For both USD/JPY and USD/CAD, their current candle suggest that USD is strengthening more than JPY and CAD.
For CAD/JPY, CAD is getting more buyers than JPY.
Overall, on this time-frame, the ranking based on price strength are: USD (strongest of the 3); CAD; and followed after by JPY (weakest).
Figure 2: “1 Week” charts of USD/JPY, CAD/JPY and USD/CAD
From figure 2, the price action in recent weeks for USD/JPY and CAD/JPY seems to ignore the Fib. Levels. In this case, it is a good indication to look for long trade setups more than short setups …