Yo! Let’s resume last week’s chart pattern party with a couple of fresh chart patterns on USD/JPY and EUR/USD.
EUR/USD has been trading higher lately.And in the process, a fresh ascending channel has formed for us to play with.
The pair is already moving higher after testing the channel’s support at 1.1750, however. Y’all therefore better decide quick if it’s still worth it to jump in with a long.
If you do find an opportunity to go long, then just make sure to keep an eye on the pair until it clears 1.1810 since bears appear to have an entrenched position there.
Also, just keep in mind that there’s always a risk for a downside channel breakout. Such a scenario ain’t confirmed until the pair smashes lower past 1.1650, though.
USD/JPY’s price action appears to be tapering into a point. And if we connect the most recent peaks and troughs, we can see that a fresh symmetrical triangle pattern has formed on its 1-hour chart.
A symmetrical triangle means that bulls and bears are playing a game of tug-o-war, but neither side is clearly winning. It’s therefore only a matter of time before one side wins.
Bulls are just as likely to win as bears, though, so y’all may wanna prepare for both downside and upside scenarios. But whichever side wins, the resulting breakout move will likely have enough steam for a 300-pip move.
Anyhow, just keep in mind that if a topside breakout occurs, then a move higher past 110.30 would be an early sign that bulls are winning. However, the pair still needs to clear 111.40 in order for the topside breakout to be validated.
A move lower past 108.70, meanwhile, would be an early sign that bears are winning out. The pair would still need to smash lower past 108.10 in order to validate the downside breakout, though.
In any case, y’all just make sure to practice proper risk management as always, a’ight?