I’m ending this week’s intraday charts update with even more channel setups. This time, I’ve got a couple of short-term channel setups on AUD/JPY and CAD/JPY
AUD/JPY has been trending higher while respecting that there ascending channel.
One of the more conservative ways to play an ascending channel is to look for opportunities to go long when the pair is at the channel’s support area. Unfortunately, however, the pair is currently at the channel’s mid-channel area.
Even so, y’all may wanna put this one on yo watchlist since the pair may be moving back down again soon since the pair appears to be hesitating at the mid-channel area. Moreover, stochastic is already signaling overbought conditions and all that.
And if the pair does move back down, then bulls will likely be waiting at or just above the area of interest at 86.90.
Be wary if bearish momentum is strong enough that the pair stages a downside channel breakout and clears 86.00, though, since that would be a clear sign that them bears are in control.
That there ascending channel on CAD/JPY’s 1-hour chart ain’t really new since we last played it on Tuesday.
If y’all can still recall, the pair was hesitating at 88.70 so we were waiting for the pair to test the channel’s support area at 87.70 so that we can jump in with a long.
Well, check that out, dawg. The pair did move back down and 87.70 did hold as support before sending the pair higher above 88.70, so congratulation on bagging 100+ pips, if you were able to ride this one.
Anyhow, the channel is still intact, so we’re playing it again. And since the pair just tested the channel’s support area at 88.20, we’re lookin’ to go long again.
As always, there’s a risk for a downside channel break, so y’all may wanna think about bailing yo longs if the pair goes below 87.70 on strong bearish momentum. And as usual, just remember to practice proper risk management, a’ight?