I have a similar game-plan for GJ, as it's currently sitting just below a key at 147--of which-- you all have seen this key level rejected to the exact pip 3 times since we took this pair short from 147 back in the first week of this month. Please note before entering this trade, that GJ is one of the most volatile pairs in FOREX in terms of . It's risky to trade this pair in general. This being said, I feel it's at one of the better opportunities in terms of probable short entries to profit from. By analyzing the for this pair, 145.4 is a price that I believe is being magnetized towards at the moment. This is currently +90 pips to the downside from current price, and I think we can take this pair short for a nice opportunity.
Brexit news are on the sidelines this week, so we can utilize YEN weakness to our advantage.
If I were to enter this trade short, stops would have to be very wide and at-least above 147. Since this is above -60 pips in terms of a SL, I won't be suggesting any price for entry--when I do, or if I do. I'll be taking this as a risky trade in general, and many weeks worth of straight profits to my advantage in furthering growth in my own capital. This pair could just as easily range in between 146.334 and 147, so be very very cautious and don't just enter this pair short for the sake of it.
A way that I would suggest entering this pair, would be to cut your 2% risk per position in half to 1%, making the -70 pip SL equal to a normal 2% risked-trade that has a -35 pip SL. This would cut your risk in terms of it's amount in capital, and allow you to still benefit from a highly- volatile (but potentially lucrative) cross-pair setup.
*S*top-loss will be above 147 (-60 pips)
Entry will be determined on if price action can maintain below 146.334 (current price)
Target 1: 145.4 (+100 pips)
Target 2: 145 (+140 pips)**
Lot-size for this trade should be half of your normal lot size, to appropriate the proportionate risk in terms of the with this cross-pair.