Wez1981

GBP/JPY Short and then Long

FX:GBPJPY   British Pound / Japanese Yen
As the GBP/JPY market is volatile due to the Brexit Saga, fundamental traders are having a ball and technical trades are enjoying applying their skills. Here is my idea of the market movement in the next few days to weeks.

The 1Hour chart reflects that the market is in a downward wedge and waiting to break out. My views is that the downward trend is not done with us as yet.

Target 1:
My current target is a drop until next support line 140.226 (this is where I will take profit for round one). I am very conservative and will take the profit a few pips above target one due to spreads etc.
Target 2:
When the market opens a new candle under 140.226 on the hour chart, I will open a new sell for target 2 at 139.841.

Target A $ B
With the above in mind the current pattern reflects a possible head and shoulders at an angle, where line AB is the neckline and if a new candle on the hour is created above the AB line the Target will be 140.845 which is also currently used as a breakout point in the above analysis. After the break out I will focus on taking a long to Target A at 141.134 when the line CD has been broken and also Target B at 141.616


Comment: Target 1 has been reached, aiming for target 2 , if the market opens above 140.226 on the hour chart we will target 140.845 or the diagonal line CD
Comment: Update on my last comment. target 1 has been reached. even thought the market opened above target 1, i still see the potential for the market to trader down to target 2. I always say do not trade what you think and assume but what the market is showing you.

If the the market opens below target 1 then sell with take profit at target 2 of at least 80% of the target. If the next candle 10am (gmt+2) opens above the target 1 mark place a conservative buy Transaction and take profit to be monitored to diagonal line AB at least or 140.845
Trade closed: target reached: Target 1 and Target 2 has been reached.

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