Here we have another nice clean GBP/JPY set up. GJ has been moving aggressively to the downside since the start of the trading week, dropping 170 pips from a major area of resistance at 141.250 (1D TF) all the way down to a major area of support at 139.500 that I have also identified on the Daily timeframe. As of now, the market is currently in a consolidation phase which is a NO TRADE ZONE. I want to see the market break out of the consolidation zone, breakthrough the resistance at 140.120 for me to enter a buy position. Risk-Reward on this trade will be around 7:1 aiming for 65 pips targeting the previous high.
The last GBP/JPY trade I took yesterday hit my take profit of 40 pips, feel free to take a look at my last post to see how I caught that trade!
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Trade closed manually
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I have closed this GJ trade with a profit of 45 pips. Price has broken below the low of the new high that which indicates me to get out of the market as there could be a potential trend reversal. Let me know if you managed to catch this trade in the comments below!