Yo! If you’re a trend rider, then today’s intraday charts update is just for you ‘coz I’m serving up a couple of channels on CHF/JPY and CAD/JPY. Get ’em while they’re still fresh!
CHF/JPY has been trading ever lower lately while apparently bouncing up and down inside that there descending channel.
As y’all should know by now, one of the more conservative ways to play a descending channel is to look for opportunities to go short when the pair is at or close to the channel’s resistance area.
And as y’all can see on that there chart, the pair just recently bounced off the channel’s resistance area at 112.00. Buyers then tried to push the pair back up again but encountered fresh sellers at 111.50.
Y’all should therefore decide quickly if it’s still worth it to jump in with a short. Of course, there’s no shame if you decide to stay in the sidelines.
Also, just keep in mind that there’s always a risk that the bulls may win out and stage an upside channel breakout.
If that happens, then a move past 112.00 would be an early signal that bulls are in charge. And if the pair then clears 112.50 after that, then y’all may wanna think about bailing yo shorts or even switching to a more bullish bias.
Another yen pair, another descending channel. This time, we’ve got our eyes on that there descending channel on CAD/JPY’s 1-hour chart.
Unlike the earlier setup, however, CAD/JPY is currently testing the channel’s resistance area at 82.40. Y’all may therefore wanna start lookin’ for opportunities to go short on the pair. And all the more so, given that stochastic is already signaling overbought conditions and all that.
As always, the chance of an upside channel breakout is there, so just be ready to bail yo shorts if the pair moves higher past 83.40, especially if bullish momentum is strong.
At any rate, just make sure y’all remember to practice proper risk management as always, a’ight? Peace! I’m out!