Yo! If you’re lookin’ for trend plays on the yen, then today’s intraday charts update is for you since I’m serving up a couple of channel patterns on CAD/JPY and USD/JPY.
CAD/JPY has been in a steady downtrend since early February. Not only that, the pair has been trending lower while respecting that there descending channel on its 1-hour chart.
The pair has already pushed off from the channel’s resistance area and is currently testing the mid-channel area. Y’all therefore better think quick if it’s still worth it to jump in with a short.
But before you do, just note that the pair is already hesitating at the mid-channel area. Moreover, stochastic is already signaling oversold conditions and all that.
There’s therefore a good chance that the pair may move back up again to retest the channel’s resistance area, which should be somewhere around the area of interest at 84.50.
However, also note that if the pair does pull back and then stages an upside channel breakout after that, then y’all may wanna bail yo shorts, especially if the pair clears 85.30, thereby confirming the breakout.
Like CAD/JPY, USD/JPY has also been trading lower while apparently inside a descending channel pattern.
Unlike CAD/JPY, however, USD/JPY just recently left the channel’s resistance area and hasn’t even reached the mid-channel area yet.
However, do be extra careful since stochastic is already signaling oversold conditions and all that. Moreover, them moving averages appear to be moving closer together for a possible cross-over into uptrend mode, which may attract more bulls.
The channel’s resistance area at 107.80 seems pretty solid, though. In fact, 107.80 even lines up rather nicely with the 61.8% Fibonacci retracement level.
But just in case the bulls do start winning out, then y’all may wanna think about bailing yo shorts if the pair moves higher past 108.50 since that would invalidate the descending channel and show that bulls are in control.
In any case, just make sure y’all always practice proper risk management, a’ight? Peace y’all!