GBP/JPY has been moving strongly to the upside for a while now, fundamentally this is because of the mass COVID-19 vaccination programme going ahead in the UK which the markets are pricing in bullish for GBP despite the fact that the UK is currently in full national lockdown and a massive chunk of the economy is currently closed. As of today on the charts, GBP/JPY is stuck in a 60 pip range between 141.550 and 142.130 which is a messy and risky area to trade. On the 4H timeframe you can see that during the Asian session last night following through to the London session this morning that price had bounced off a strong support level (2) within the range after creating a low at 141.600 to continue up towards 142.130. As price reached 142.130, the 4H candle shows a massive wick rejection coming off the current 4H candle indicating that buyers are losing control and sellers are stepping in.
I would like to see the market break out of the messy range it is currently in and break below support(2) at 141.550, and retest the area in order for me to trade and target 141.140 area. There is a possibility that price could continue the bullish trend if it breaks above 142.160 but I like the selling idea more. Let's see how this one plays out!
I WILL UPDATE ANYTHING THAT HAPPENS ON THIS TRADE, WHETHER I TAKE A SELL AS ANTICIPATED OR THE MARKET BREAKS RESISTANCE AND THEN THERE IS A BUYING OPPORTUNITY.
Feel free to like this post if you agree with my idea, comment and discuss any ideas or questions you may have and follow my profile for notifications for when I post/update my idea.
I would like to see the market break out of the messy range it is currently in and break below support(2) at 141.550, and retest the area in order for me to trade and target 141.140 area. There is a possibility that price could continue the bullish trend if it breaks above 142.160 but I like the selling idea more. Let's see how this one plays out!
I WILL UPDATE ANYTHING THAT HAPPENS ON THIS TRADE, WHETHER I TAKE A SELL AS ANTICIPATED OR THE MARKET BREAKS RESISTANCE AND THEN THERE IS A BUYING OPPORTUNITY.
Feel free to like this post if you agree with my idea, comment and discuss any ideas or questions you may have and follow my profile for notifications for when I post/update my idea.