Yo! Today’s intraday charts update is mainly for the trend playas out there since I’m serving up a couple of short-term channels on NZD/JPY and GBP/JPY.
NZD/JPY’s recent price action has been tilting to the downside recenlty. Not only that, the pair has been moving lower while apparently respecting 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.
Unfortunately, the pair has already some distance from the channel’s resistance at 75.20.
However, y’all may wanna put this pair on yo watchlist since stochastic is already signaling oversold conditions. And that means that the pair may be moving back up again to test the channel’s resistance, which may give us an opportunity to go short on the pair.
And just as a precaution, do note that there’s is always a chance that the pair may stage an upside channel breakout. And if that happens then, a move higher past 76.10 would be a sign that bulls are clearly winning out and that the trend may be changing.
GBP/JPY has been steadily trending lower lately, forming that there descending channel in the process. And as y’all can see, the pair is currently moving back down after getting rejected at the channel’s resistance at 146.20.
Y’all better decide quick if it’s still worth it to go short on the pair. But before you do, just note that stochastic has already reached oversold territory. And that means that there’s presently a higher-than-average chance for an upside channel breakout. Y’all may therefore wanna prepare for such a scenario as well.
We’re still mainly bearish on the pair, though, since them moving averages are still in downtrend mode. The pair has been closing above the moving averages, though, which implies strong bullish interest.
Anyhow, a move higher past 146.90 would be an early sign that bulls are taking over. The pair would still need to clear 147.90 in order to validate the topside breakout, though.
In any case, just make sure y’all practice proper risk management as always, a’ight?