ProCFDTrader

Huge sell-off in GBPJPY, Will it continue to drop?

FX:GBPJPY   British Pound / Japanese Yen
Before the start of this week, I mentioned in my GBPJPY idea that 144.50 is a selling area with targets at 141.30. (read attached idea below to see it)
As you can see, GBJPY not only dropped to my target at 141.30 but also broke out of the bearish flag and went as low as 137.50.

This is a huge 700 pips drop fueled by weak demand for GBP and very strong demand for Yen due to the ongoing sell-off in stocks.

The important question is, will GBPJPY continue to drop and should you sell it?

Well, if you have been holding sells from my sell entry at 144.50 there's no harm in selling it. However, after such a huge drop within a short period of time, I would wait for a pullback to happen before putting any fresh sell trades.

Ideally, I would like to see a healthy pullback to the bottom of the BEARISH FLAG at 141.50 area before thinking about selling.

If GBPJPY continues to drop , the Support areas mentioned in my chart will come into play.


Comments

Great work. Thanks for sharing
Reply
i'll wait for the pullback/retest before selling it again. Thanks for great analysis
Reply
nice one
Reply
there is not support in this market. short sell any rips/bounces. next 9-12 months strong downtrend.
just cause you put up some zones in there don't mean they will act as support.
Reply
Keep the good work
Reply
gbpjpy weekly TP bears +1000/2000 (NEW)
Reply
Thanks
+1 Reply
Great work
+1 Reply
very very nice
+1 Reply
thanks for the detailed explanation
+1 Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Refer a friend My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out