For today’s intraday charts update, we’ll be checking up on our old channel setup on USD/CHF. But if you’re lookin’ for something more fresh, then I’ve also got a fresh channel on USD/JPY that y’all may wanna check out.
We discovered that there descending channel back on July 11. And back then, we were lookin’ to go short since the pair was testing the channel’s resistance area, which happened to line up nicely with the area of interest at 0.9680.
In addition, I also told y’all back then that the pair needs to hustle past 0.9630 in order to confirm that bears are indeed in control.
Well, check that out, homie. As y’all can see, 0,9680 held as resistance and the pair cleared 0.9630. So if you were able to catch a ride on the pair, then congratulations on bagging some delicious pips. Aww, yea!
Anyhow, the channel is still intact but chances are good that the pair may be moving back up soon since the pair is fast approaching the area of interest at the 0.9500 major psychological level. Moreover, stochastic is already signaling oversold conditions and all that.
If the pair does start moving back up, then bulls will likely be gunning for the channel’s resistance area, which should be somewhere around 0.9630. Some of the more gangsta traders may even wanna ride that upswing, if it does happen. However, just know that going long inside an ascending channel is a counter-trend play and therefore extra risky.
Also, the pair should ideally not reach 0.9680 since a breach past that likely means that bulls are gunning for 0.9740 in order to confirm an upside channel breakout.
USD/JPY has been trending lower while trapped inside that there fresh descending channel.
And presently, the pair appears to be hesitating at the mid-channel area. And we can see why since the mid-channel area happens to sit right smack on the area of interest at 111.80. Also, stochastic is already signaling oversold conditions and all that.
As such, there’s a chance that the pair may move back up again to test the channel’s resistance area, which should be at or below 112.50. Y’all may therefore wanna put this pair on yo watchlist.
Looking at our moving averages, we can see that they’re currently in downtrend mode. As such, an upside channel breakout is unlikely at present.
But in the unlikely even that such a scenario plays out, then y’all may wanna bail yo shorts or even switch to a bullish bias if the pair clears 112.90 on strong bullish momentum.
In any case and as usual, just remember to practice proper risk management, a’ight? Peace!