GBPJPY - Limited downside, more upside likely
Hey guys,
as you can see price has been unfolding in a clear identifiable five wave structure to the downside. However, price failed to violate the psychological level of 145.00 on the weekly timeframe and closed recently with a pin bar on the weekly. This has been followed by a minor five wave impulse which can be considered to be a wave (a) retracement of the bigger upmove, which led after its completion to a counter-trendline break.
Price has been recently clearly rejected at the CTL (counter-trendline) and closed with a pin-bar on the 4H. I've labeled this move as a wave (b). So on lower timeframes, the current structure might give us a short-term opportunity for a sell. However, I do believe that we will see another minor five wave impulse to the upside after price having hit one of the marked buy zones. Look for bears to lose momentum at these two levels and a final confirmation to anticipate a potential upmove till 149.30-150.00 area.
Safe trades!
Bud
as you can see price has been unfolding in a clear identifiable five wave structure to the downside. However, price failed to violate the psychological level of 145.00 on the weekly timeframe and closed recently with a pin bar on the weekly. This has been followed by a minor five wave impulse which can be considered to be a wave (a) retracement of the bigger upmove, which led after its completion to a counter-trendline break.
Price has been recently clearly rejected at the CTL (counter-trendline) and closed with a pin-bar on the 4H. I've labeled this move as a wave (b). So on lower timeframes, the current structure might give us a short-term opportunity for a sell. However, I do believe that we will see another minor five wave impulse to the upside after price having hit one of the marked buy zones. Look for bears to lose momentum at these two levels and a final confirmation to anticipate a potential upmove till 149.30-150.00 area.
Safe trades!
Bud
Trade active:
Short trade active. Very low risk to high reward setup. Awaiting an impulsive reaction on the release of CPI numbers in an hour
Comment:
1:4 risk/reward for the short setup