The chart pattern party ain’t over yet ‘coz I found a channel on GBP/JPY and a triangle on EUR/JPY that y’all may wanna take a look at. Hmm. I guess that means I’m serving up a yen + chart pattern double special in today’s intraday charts update.
GBP/JPY’s recent price action has a noticeable upside tilt. And if we connect the most recent peaks and troughs, we can see that the pair has been moving higher while trapped inside an ascending channel.
The pair appears to be gearing up for an upside move after testing the area of interest at 148.90, which is just above the channel’s support area. Y’all therefore decide quick if it’s still worth it to jump in with a long.
Looking at our technical indicators, we can see that stochastic is already signaling oversold conditions and all that, which may attract enough bulls to push the pair higher.
However, we can also see that them moving averages just crossed over into downtrend mode. There’s therefore also a chance for a downside channel breakout. And y’all may wanna prepare for such a scenario as well, especially if the pair validates the downside break by smashing lower past 147.90.
A symmetrical triangle has apparently formed on EUR/JPY’s 1-hour chart. Well, it ain’t really all that symmetrical, so “symmetrical-ish” would probably be more accurate.
At any rate, a symmetrical triangle means that bulls and bears are playin’ a game of tug-o-war, but neither side is really winning out, and it’s only a matter of time before one side does.
And if one side does happen to win out, then that will likely result in a breakout.
However, a breakout move to the upside is just as likely to happen as a downside break, so we don’t really have a strong directional bias on the pair. And it would even be prudent for y’all to prepare for both upside and downside scenarios.
Just note that an upside move needs to clear 132.40 to validate the breakout. Otherwise, the risk remains high that the breakout move may end up being a fakeout move instead.
A downside move, meanwhile, needs to move lower past the 129.00 major psychological level, ideally on strong bearish momentum.
Whichever scenario plays out, just remember to always practice proper risk management, a’ight? Peace!