Wassup, dawg! If you’re a breakout chartist and you’re lookin’ for short-term setups on the yen, then I’ve got yo fix ‘coz I’m serving up a couple of triangles in today’s intraday charts update.
As y’all can see, a fresh symmetrical triangle has recently formed on CAD/JPY’s 1-hour chart.
And looking at our technical indicators, we can see that them moving averages are already in uptrend mode. Stochastic, meanwhile, will soon reach oversold territory. There are therefore more technical arguments for a potential upside move.
However, a symmetrical triangle pattern means that bulls and bears are locked horns but neither side has a clear advantage. And that means that the pair may break out in either direction, so we shouldn’t have a strong directional bias on the pair.
Anyhow, the pair needs to clear 85.40 in order to validate an upside breakout. And if an upside breakout does occur, then that means that bulls will likely be gunning for 87.10. There’s an area of interest at 86.30, though, so make sure to observe how the pair reacts to that price level.
As for a downside breakout, the pair should smash lower past 83.60, ideally on strong bearish momentum. And the most likely destination would be the area of interest at 82.50.
A triangle pattern has also formed on NZD/JPY’s 1-hour chart. This one’s an ascending triangle, though. However, the chart pattern also looks like a bullish pennant.
Anyhow, it’s all the same since ascending triangles and bullish pennants are both bullish chart patterns, which means that our main directional is to the upside.
And today’s play is to wait for a strong break past 74.10, with the 75.00 major psychological level being the most likely destination.
However, there’s always a risk that the pair may break to the downside instead. And a break lower past 73.70 would be an early signal that bears are taking over. Although the pair would still need to smash lower past 73.40 in order to validate the breakout.
And if that happens, then that means that bears are likely gunning for the area of interest at 72.40.
In any case, y’all just make sure to practice proper risk management as always, a’ight? Peace!