GBPJPY Price Action Short Set-up

Looking at the extreme push up, expecting a retrace back down from the 171.2 range, with a sell limit placed to catch the entry. This is the ideal price action entry where price will come to retest the break of the short term trend line and also a previous short term support, that should turn to resistance, and begin to make its way down from there. Price testing the opposite side of a trend line tend to have a high chance of working out, and paired with the support becoming resistance, makes this a high probability trade, and also lines up with price action typical behavior. Stop set for 171.88, target set for 167.3, the top of a demand area where price launched out of before.

Also, just looking from another perspective, we have a double top, which signals a trend reverse, which should encourage sellers to come into play, and with a clear zone below for buyers they should be waiting for the demand area below to begin buying back in.

This trade looks to capitalize on the general assumption the market takes back gains it gives out quickly. At the target would be the most likely place for price to rise from again if it does not break through the entry/stop levels.

Using a mild stop distance for the set-up, using a 35 pip stop would be more aggressive, where about a 120 pip stop to be above the highs would be a more conservative stop level.

Order cancelled:

Doesn't look like price will come back first, just continue on down to the demand area below.

Switching to a buy limit in the bottom of the demand around 166.987 with a new idea