If any y’all lookin’ for short-term setups on the yen, then I’ve got yo fix since I’m serving up a yen special in today’s intraday charts update, with a break-and-retest on EUR/JPY and a channel for NZD/JPY on today’s menu.
As y’all can see, EUR/JPY broke lower past a rising trend line before pulling back. And currently, the pair is testing the broken trend line, which happens to line up with the area of interest at 132.90.
So, will 132.90 hold as resistance? Well, there seems to be a higher-than-average chance that 132.90 will hold since stochastic is pointing back down again after visiting overbought territory. Also, them moving averages are coming closer together and will likely cross-over into downtrend mode soon.
If 132.90 does hold as resistance and the pair starts moving back down, then that likely means that them bears are gunning for 132.00 next.
But just in case 132.90 fails to hold, then y’all just be ready to bail yo shorts if the pair moves higher and clears 133.20 since that would push the pair above the broken trend line. And that means that bulls are very likely in control.
If y’all can still recall, we had a big descending channel on NZD/JPY’s 1-hour chart that we first identified way back on November 20. We tried to play that descending channel again back on December 4.
That descending channel is still actually intact. However, if we take the most recent price action into account, we can see that the pair has been trading higher while inside an ascending channel.
And presently, the pair is testing the channel’s support area at 77.00, so y’all may wanna start lookin’ for opportunities to go long on the pair.
But as mentioned earlier, our original descending channel is still valid and in play. So if the pair stages a downside breakout from today’s ascending channel and clears 76.70, then y’all may wanna switch back to our original bearish bias on the pair since that would mean that bears are in control.
In any case, just remember to always practice proper risk management, a’ight?