That there ascending channel ain’t the same as the one we had last Friday. If y’all can still recall, we had a downside breakout as one of our major scenarios. And breakout the pair did. Howevah, the bears failed to smash past 113.20. Heck, price didn’t even get nowhere near there. So, in the spirit of keepin’ it real, we are taking into account the most recent price action. And we get that there brand-spankin’ new ascending channel that shows the uptrend decelerating.
Anyhow, the pair now seems to be close to the new channel’s support area, so y’all better start looking for opportunities to go long. Just be ready to roll out if the bears appear well-entrenched at 115.20. After all, the pair would still be close enough to the channel’s support area that the bears may be tempted to stage a downside breakout. You feel me, cuz?
Back on December 15, we had a Fibonacci setup on that there chart, since we wuz anticipatin’ a pullback after the pair reached the major area of interest at 118.50. We wuz lookin at all them Finbonacci retracement levels as valid pullback areas. Although we favored the 61.8% retracement da most, since it be close to the area of interest at 116.00. Howevah, price decided to chill at the 50% retracement level before pulling back up. It’s cool, though, since we wuz also lookin’ at that, as I just said earlier.
Howevah, the pair found resistance again, and is moving back down. And what appears to be a double top pattern be forming, like, so y’all better sound the reversal alert. Price needs to break past 116.60 to confirm the pattern, though.
Finally, EUR/JPY broke out of that there ascending channel, also from last Friday’s intraday charts update. The pair seems reluctant to move lower, though, since the pair seems to be quite attached to the 122.80 handle. We therefore have two major scenarios in mind here: (1) the bulls finally get their, ug, stuff together and push the pair higher, probably back into the channel, or (2) the bears win out and use 122.80 as a diving board to plunge lower.
Lookin’ at our technical indicators, stochastic currently favors the first scenario. The moving averages, meanwhile, are about to cross-over into downtrend mode, which favors the second scenario. And just in case you find the second scenario more bangin, just know that the pair first needs to smash that rising trend line (diagonal orange line) and then the 121.10 handle before you can chillax. Otherwise, chances are good that the bulls may regroup. Know what I’m sayin?
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