GBP/JPY formation during Asian session signaling possible test of .
GBP high impact news in within the next 2 hours on Claimant Count Charge and ILO unemployment (3 month) which is a leading indicator for the UK economy. Consensus is showing slight increase which would support the GBP/JPY drop.
- Price holding above the 200
- Price holding below the 50
- 21 has crossed below 50
- forming at the 50
- Drop of within the flag
- A large tail rejection candle ( ) at optimal entry would be highly desirable for entry
Support – 200 , 137.000, 136.650
Resistance – 137.675, 50
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 137.550
Supporting Entry – 137.500
Candle Reversals for entry
- Dark Cloud Cover
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
IF: Price breaks above 137.740 level and violates 50 – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
Reward / Reward Targets:
Optimal Entry 137.550 – Target 1 137.000 = 3x Reward to Risk
Optimal Entry 137.550 – Target 2 136.650 = 5x Reward to Risk
Supporting Entry 137.500 – Target 1 137.000 = 2x Reward to Risk
Supporting Entry 137.500 – Target 2136.650 = 3.8x Reward to Risk