Sup, fam? It’s a brand spankin’ new week and we’re kickstartin’ it with a couple of short-term chart patterns on EUR/JPY and CHF/JPY.
As y’all can see, EUR/JPY has recently been trading sideways while tapering into a point. And in the process, that there symmetrical-ish triangle pattern has formed for us to play with.
A symmetrical-ish triangle pattern may break out either to the upside or the downside. As such, we don’t really have a strong directional bias on the pair.
Our technical indicators seem to favor moves to the downside, though. After all them moving averages just crossed over into downtrend mode. Stochastic, meanwhile, has yet to reach oversold territory.
Anyhow, if the pair does break to the downside, then just make sure to keep a close eye on the pair until it smashes past 128.00 because the chance of a breakout ending up as a fakeout is still pretty high until the pair breaks past 128.00.
For an upside breakout, meanwhile, you may wanna avoid chillaxing until and unless the pair clears 129.40 on strong bullish momentum.
If riding trends is more your thing, then check out that there descending channel on CHF/JPY’s 1-hour chart.
Now, I always say that one of the more conservative ways to play a descending channel is to look for opportunities to go short near the channel’s resistance area.
Well, check out where the pair is currently at, dawg. That’s right. Y’all therefore better start lookin’ for opportunities to go short on the pair. And all the more so since stochastic is already signaling overbought conditions and all that. Moreover, the channel’s resistance happens to line up with the area of interest at the 117.00 major psychological level.
If or when the pair does start moving back down, then just make sure to observe how the pair reacts to 116.60 since bulls appear to have entrenched themselves there.
And while an upside breakout is currently unlikely, given that them moving averages are in downtrend mode, the possibility is still there. As such, just be ready to start thinkin’ about bailing yo shorts if the pair clears 117.40 on strong bullish momentum.
In any case, just make sure to practice proper risk management as always, a’ight?