GBPJPY Sell The Breakout Opportunity (Bearish Setup)

Longer term I am expecting another leg up to 155.00 but here on the daily time frame, I see an opportunity to short the pullback with a tight stop above the previous high.

Trade active:

Forgot to add the trendline which we've broken out from.

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Daily timeframe

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I've closed some of my position with +95pips and trailed my stop loss. The 1-hour chart shows an inside bar with a break to the upside on a rising trendline support. Please note, the trendline support is drawn differently from how I have done so above... I will share screenshots below:

I have also taken a Long position with entry @ 147.219 and a tight stop loss.

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Triled stoploss on my long position. I don’t see much upside. Stop is now in profit.

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Long position closed +43pips. Opened another short position, Entry @ 147.623

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We are +130pips on the initial entry and +80pips on the second entry. You can see from this screenshot that price is currently being compressed into a wedge between the EMA50 (Orange) and the EMA200 (Blue) on the 1-hour timeframe. I'm expecting a break to the downside and this could provide us the momentum we need for a big leg down towards our target.

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We haven't broken to the downside but in fact, price made a strong bullish move to the upside. We can see from the 4-hour chart above, we have a clear declining trendline that has acted as a trendline resistance, pushing price down each time we touched it. However, price has retested that trendline support and has breached it. At this stage, it is unclear whether price will close above this level or be pushed back down by sellers.

I have closed part of my position. If we continue to the upside, we may retest the rising trendline near our entry point, in which case I will consider adding to my short position.

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I have added a small short from 147.205

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We just hit +200pips & bounced off pretty strong from 146 which is a strong psychological even-number support level. I have closed my entry from 147.205 but keeping the initial entry running for now.

There is never any guarantee in the markets and this can still quite easily pull right back and liquidate our position. It is currently a 1:1 P/L so if you're not comfortable in holding your position, you can exit from here.

Trade closed: target reached:

+311 pips!
Well done to everyone who took this trade with me.