Hello, everybody and welcome to Cybernetics Trading Lab, today we are going to analyse the GBPJPY, translating the market information by using a full technical analysis on different time frames, giving you a personal opinion about the next most likely market movement and helping you to spot and manage market opportunities.[/I]
Top Down Technical Analysis: After a quite long period of uptrend inside a rising wedge, the market broke the structure to the downside, starting a new bearish impulsive phase. As you can see on the chart, since the end of October, the market has been performing impulses and corrections to the downside, and considering the overall bearish momentum in most JPY pairs, we can still see the possibility of further continuation till is LTF swing low and so on till the bottom of the beginning of the rising wedge.
When, where and why would we step into the market? It’s a market condition that we like and the structures are quite clear. Although we don’t see enough confluences to enter this market from the top of the LTF structure, as moderate traders, waiting the breakout and continuation will definitely limit your losses. 163.000 is our first target, only if all the conditions will be respected. In the scenario of reverse or breakout to the upside, this setup will be invalidated and no action will be taken on here.
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Sincerely, Cybernetics Trading Lab
DISCLAIMER Please note the views are not investment advice and should be used only for educational purpose.[/I]