Word up, peeps! I hope y’all are in the mood for another walk down memory lane ‘coz we’ll be checking up on our old setups for USD/JPY and GBP/JPY in today’s intraday charts update. Whoa! Looks like I’m also serving up a yen special today. Sweet!
If y’all can still recall, we identified that there descending channel back on Monday. And back then, the pair was testing 142.50 and looked set to move back up again.
However, I told y’all, especially the gangsta traders out there, to be wary of going long since the pair may continue to move lower to 141.60. Well, that’s exactly what happened, dawg.
So if y’all took my advice, then give yo self a pat on the back for dodging a bullet. And if you still had our original short based on our May 18 setup for GBP/JPY and decided to hold until 141.60, then congratulations on bagging 330+ pips. Aww, yea!
Anyhow, the pair did bounce back up after reaching 141.60. And presently, the pair is approaching the channel’s resistance area. Y’all therefore better get ready to start lookin’ for opportunities to go short soon.
Just note, however, that there’s always a slim chance for an upside channel breakout. So y’all may wanna think about bailing yo shorts if or when the pair does stage an upside breakout and breaks past 144.80. And as usual, just remember to practice proper risk management, a’ight?
Back on May 25, which is exactly one week ago, we identified a rising wedge pattern on USD/JPY’s 1-hour chart. Back then, the pair was at 112.00 and we were waiting for a strong break past 110.50 to validate the rising wedge.
Unfortunately, 110.50 was to strong for them bears to smash. And so the pair ended up getting rejected and bounced higher. In the process, what appears to be a double bottom pattern has began to form.
A double bottom is a reversal pattern, so our directional bias is to the upside. The pair is presently at the major area of interest at 111.30, but it needs to clear the neckline at 112.00 before the pattern is validated.
And if the pattern does get validated, then them bulls will likely be shooting for 114.20 next.
However, if either 111.30 or 112.00 hold as resistance and the bears successfully invalidate the double bottom pattern, then them bears will likely be gunning for 108.50 next.