I’m mixing it up a bit in today’s intraday charts update since we’ll be checking up on our old channel setup on EUR/JPY, but I’m also serving up a fresh trend line bounce on NZD/JPY.
And if y’all can still recall, the pair was testing the channel’s resistance area at 134.00 back then. As such, we were expecting the pair to move back down again while gunning for the channel’s support area, which we though would be somewhere between 132.00 and 131.30.
Well, check that out. That’s right, dawg. The channel’s resistance at 134.00 did hold and the pair dropped 200 pips lower to 132.00. So if any of y’all were gangsta enough to ride the downswing, then congratulations ‘coz y’all got bank. Aww, yea!
Anyhow, the channel is still valid since the pair recently bounced off the channel’s support at 132.00 and is making its way higher. So y’all better think quick if you wanna jump in with a long or not.
Do note, however, that stochastic is already signaling overbought conditions and all that. As such, there’s a high risk for a downside channel breakout. So y’all may wanna think about bailing yo longs if the pair moves lower and takes out the areas of interest at 131.30 and 130.60. And if the pair smashes past 129.50 on strong bearish momentum, then you may even want to switch to a bearish bias.
Is NZD/JPY ripe for a trend change? Well, it sure looks like it, since the pair recently broke that there rising trend line while forming a new falling trend line.
And if we look at our technical indicators, we can also see that them moving averages are just about to cross-over into downtrend mode while stochastic is signaling overbought conditions and all that.
Not only that, the pair is currently testing the fresh falling trend line. And it just so happens that the pair is also testing the area of interest at 81.40. Y’all therefore better start lookin’ for an opportunity to go short. Although y’all should know that there’s a risk that the pair may go even higher to 81.70 before moving back down again. But if the pair moves higher past that and clears 82.50, then that’s a clear sign that them bulls are in control, so y’all may wanna bail yo shorts then.
Anyhow, if the trend line does hold and the pair starts moving back down, then them bears will likely be gunning for 79.90 next. In any case, just make sure to practice proper risk management, a’ight?