Word up, peeps! For today’s intraday charts update, we’ll be taking a stroll down memory lane as we check up on our old setups for EUR/AUD and USD/JPY. Of course, it goes without sayin’ that we’ll be lookin’ for fresh plays as well.
We found that there descending channel on USD/JPY’s 1-hour chart way back on July 18. And back then, the pair was at 111.80 and we were waiting for a pullback to the channel’s resistance area, which was at or just below 112.50, so that we can jump in with a short.
Well, check that out, dawg. That’s right! 111.80 held as support and the pair almost reached 112.50 before moving back down for 180 pips and then moving back up again.
If you were able to ride this pair, then congratulations on bagging some pips. Aww, yea! We got bank, dawg.
Anyhow, the pair actually temporarily broke past our original channel, but we still get a channel when we take the most recent price action into account.
And obviously, today’s play is to look for opportunities to go short on the pair since the pair is currently testing the (adjusted) channel’s resistance area.
The channel will likely hold, although there’s a chance that the pair may try to make a run for the area of interest at 111.80 before turning lower, so don’t panic if the pair does that. And since the pair may do that, the more conservative traders out there may wanna to wait until the pair breaks that there rising trend line before shorting.
Also, you may wanna start thinking about bailing yo shorts (or switching bias) if the pairs breaks past 112.50 on strong bullish momentum since that would confirm the upside channel breakout.
If y’all can still recall, we discovered that there descending channel back on July 20. And unfortunately, the channel failed to hold, as y’all can plainly see.
However, the pair appears to have stalled at the key area of interest at 1.4700 that I told y’all to keep an eye on, so we’re not convinced that the breakout is the real deal.
Moreover, the pair began trading sideways into what looks like a symmetrical triangle pattern, which could potentially break to the topside or downside and is another reason why we don’t have a strong directional bias on the pair.
In any case, just make sure to practice proper risk management, a’ight? Also, just know that if the pair stages an upside breakout, then the pair needs to clear 1.4800 in order for the breakout to be validated. A downside breakout, meanwhile, needs to smash past 1.4630 before the breakout is confirmed.