I hope y’all are in the mood for more channels plays, ‘coz I’m serving up a couple more in today’s intraday charts update, with GBP/JPY and CHF/JPY in focus.
Okay, I’m gonna be real with ya, dawg. That there descending channel on GBP/JPY’s 1-hour chart ain’t exactly fresh since we first identified it back on June 1.
Back then, the pair was making its way higher, so I told y’all to start lookin’ for opportunities to go short. And good thing, too, since the pair found resistance at 143.60 before moving back down again for about 280 pips. Aww, yea!
Anyhow, the pair still probably has enough steam to reach 140.30. However, stochastic is already signaling oversold conditions and all that, so there’s a chance that the pair may be moving back up again soon.
Whether or not the pair reached 140.30 before moving back up again, resistance will likely form at or just below the area of interest at 142.50, which also happens to be the channel’s resistance area.
And as usual, there’s a chance that the pair may stage an upside channel breakout, so y’all may wanna bail yo shorts if the pair smashes past 143.60 on strong bullish momentum.
Okay, I admit it. That there ascending channel in CHF/JPY ain’t exactly fresh as well, since we found and played it back on May 30.
And since we last saw it, the pair climbed for about 120 pips and then crashed for 160 pips. So if you’ve been playing that channel, then congratulations. You’ve got bank, dawg!
For today’s play, the pair just bounced off the channel’s support area, so y’all better think quick if y’all wanna jump in with a long or not. And if you do decide to jump in, then just make sure to keep an eye on how the pair reacts to 114.20 since that’s a price area with rather significant market interest and seems to be acting as resistance.
Also, just note that a downside channel breakout past 112.30 is a sign that them bears are in control, so y’all may wanna think about bailing yo longs if or when the pair does get there. And as always, just remember to practice proper risk management, a’ight?