Word up, fam! It’s a brand spanking new week, and I’m starting it right with a couple of fresh chart patterns on USD/JPY and NZD/CAD.
USD/JPY has been consolidating for a while now. Moreover, if we connect the most recent peaks and troughs, we can see that price action appears to be tapering into a point, forming that there symmetrical triangle.
And looking at our technical indicators, they seem to favor a downside move at the moment because stochastic is already signaling overbought conditions and all that. Them moving averages, meanwhile, are already in downtrend mode.
However, a symmetrical triangle could break either to the upside or the downside. It would therefore be prudent to prepare for both scenarios.
Just note that an upside breakout needs to take out 107.80. Although a move past 107.20 is an early sign that bulls are already taking control. A downside move, meanwhile, needs to smash lower past 105.30.
However, the channel is still fresh in a sense, since the pair’s uptrend accelerated a bit, and today’s channel already reflects the most recent price action.
With that said, the pair just recently bounced off the channel’s support area at 0.9440. Y’all therefore better decide quick if it’s still worth to jump in with a short.
Everything looks set for an upswing at the moment, but always remember that there’s always a risk that the pair may stage a downside channel breakout instead. So just be ready to bail yo longs, especially if the pair moves lower past 0.9380 on strong bearish momentum.
As always, just make sure y’all remember to practice proper risk management, a’ight? Peace!