Sup, fam? I hope y’all are lookin’ for trend plays on the yen ‘coz I’ve got a couple of channels on NZD/JPY and GBP/JPY that y’all may like.
As y’all can see, NZD/JPY has been trending lower recently while apparently trapped inside that there descending channel.
And from the looks of it, the pair is currently bouncing off the channel’s support area. As for the likely pullback area, 77.40 seem to be the key price levels to watch since 77.40 is close to the mid-channel area.
Also, if the pair does get there, then the 100 SMA may act as dynamic resistance. But if 77.40 fails to hold as resistance, then 78.30 is the next key price area since that’s just below the channel’s resistance area.
Do note, however, that if the pair keeps going higher and takes out 79.00, then that’s likely a sign that bulls are in control. So if that happens, then y’all may wanna bail yo shorts if you still have ’em. You may even wanna switch to a bullish bias if the pair does that.
NZD/JPY ain’t the only yen pair that has been trending lower while bouncing up and down inside a descending channel because GBP/JPY has been doing the same thing.
Unlike NZD/JPY, however, GBP/JPY is currently hesitating at the area of interest at 148.90, which is just below the channel’s resistance area.
Moreover, if we look at our technical indicators, we can see that stochastic is already signaling overbought conditions and all that. Them moving averages, meanwhile, are still in downtrend mode. And it even looks like the 200 SMA is acting as dynamic resistance, which is another technical argument for resistance to form here.
But just in case 148.90 fails to hold, then everything’s still chill as long as 149.40 holds. However, if the pair clears that, then that’s an early sign that bulls are winning out. And if the pair then clears 149.90 after that, then that likely means that the trend is changing, so y’all may wanna switch to a more bullish bias then.
In any case, just remember to always practice proper risk management, a’ight?