Yo! I’m serving up a channel + safe-haven + yen triple special in today’s intraday charts update. How cool is that?
CHF/JPY has been trending lower for some time now while respecting (for the most part) that there descending channel.
And presently, there are ready setups since pair has already bounced off the channel’s resistance area and is making its ways down.
However, y’all may still wanna put this pair on yo watchlist since an opportunity to go short may present itself soon. After all, stochastic is already signaling oversold conditions and all that.
And if the pair does move back up, then the pair will likely be testing the channel’s resistance area, which should be at or just below the area of interest at 115.40.
Of course, there’s always a slim chance that the pair may continue moving higher and stage a topside channel breakout.
If that happens, then moving higher past 115.80 would be an early sign that bulls are taking control. The pair would still need to clear 116.10 in order to validate the topside breakout, though.
USD/JPY has also been bouncing up and down while trapped inside a channel. But as y’all can see, this one is an ascending channel, so we’re mainly bullish on the pair.
And as y’all can also see, the pair is currently testing the channel’s support at the 114.00 major psychological level. Y’all may therefore wanna start looking for opportunities to go long. And all the more so, given that stochastic is just about to enter oversold territory.
Do note, however, that selling interest at the 114.50 minor psychological level appears to be strong, so much so that the pair failed to test the channel’s resistance. So if support does hold and the pair moves back up, then y’all just make sure to observe how the pair reacts to 114.50.
That also means that there’s a higher-than-average chance for a downside channel breakout. Y’all may therefore wanna prepare for such a scenario as well, especially if the pair smashes lower past 113.60 on strong bearish momentum.
Whichever scenario plays out, y’all just remember to practice proper risk management as always, a’ight? Peace, out!