GBPJPY – Pullback provides a short opportunity – week of 02 May
This is counter-trend, so I recommend half position size.
We have been in a strong bullish trend, all JPY crosses have been. Price is above the 200 dma and I usually look only for bullish trades in such situations. But now I am looking to go short. Here are my reasons:
- Price stalled at 167.50 for 2 days.
- A strong bearish move commenced that lasted 3 days.
- A pullback followed for the next 3 days, but it was weak by comparison.
- Now the area around 163.00 is offering resistance and price is stalling again.
If this was a with trend trade, I would go short at current price. But in this case I will set my entry just below the low of Friday and stop above the recent high. My target is above the next s/r level at 158.00. There is a potential for 1.85R trade.
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Always use sound money and risk management in all your trades.
We have been in a strong bullish trend, all JPY crosses have been. Price is above the 200 dma and I usually look only for bullish trades in such situations. But now I am looking to go short. Here are my reasons:
- Price stalled at 167.50 for 2 days.
- A strong bearish move commenced that lasted 3 days.
- A pullback followed for the next 3 days, but it was weak by comparison.
- Now the area around 163.00 is offering resistance and price is stalling again.
If this was a with trend trade, I would go short at current price. But in this case I will set my entry just below the low of Friday and stop above the recent high. My target is above the next s/r level at 158.00. There is a potential for 1.85R trade.
If you like my analysis, please give it a “thumbs up” and follow me to get immediate notifications.
Always use sound money and risk management in all your trades.
Trade active:
In profit, moving slower than usual. Stop at break even.