JWagnerFXTrader
Short

GBPJPY Wave (iii) Lower - 186.30 key level

FX:GBPJPY   British Pound/Japanese Yen
The pivot lower in the GBPJPY             has been on the back burner as the EURUSD             collapsed last week. It appears we have a leading diagonal lower in circle '1' that began on the Friday October 23 high. Coincidentally, we are showing Oct             23 as the highest volume day in over 5 years for the GBPJPY             .

If circle wave '3' finished at today's low, then a small bounce higher is likely to be contained below 185.

The higher probability scenario is what I have labeled on the chart. That is to say we are in the beginning stages of wave ( iii             ) lower that may carry us towards 178 and possibly lower to 173.

Retail sentiment is positioned at -1.3 so it is not extreme in either direction. If we see volume pick up and/or retail sentiment show up as buyers then that could add more fuel to the bearish fire.

Good luck and happy trading!
Is this short because the major support has been broken??
Reply
Hi Alex - I wouldn't consider it a major support level broken. However, the move below the wave (4) low and lower highs builds the case this may correct deeper. A bigger and 'major' support level would be the grey trend line near 183. Even a break of that level may still offer a short opportunity towards 178.
Reply
snapshot
https://www.tradingview.com/chart/GBPJPY/nna4CQeG-GBPJPY-4hr-sell-setup/ almost same view
+1 Reply
JWagnerFXTrader PRO farid_ardavani
Nice chart. Yes, some similarities...thank you for sharing.
+1 Reply
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