GBPJPY – Time to get long again? - the week of 16 May, 2022
The last 4 weeks have been seriously bearish for this pair but in my opinion, this is about to change. The 200dma has acted as a dynamic support/resistance and held the decline. Friday saw a decent amount of recovery and we overcame the significant 158.00 level.
I am looking for a small pull-back and signs that we are resuming the uptrend. With a stop below the Friday candle, the initial target will be 163.00 region. A continuation to 167.50 region is also a possibility. This could be a potentially +2.5R trade.
If however, price continues to the downside with momentum, that would negate my analysis. I will not be interested in going short, instead would wait and watch – perhaps PA in the 153.20 area would provide an opportunity to go long.
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Always use sound money and risk management in all your trades.
I am looking for a small pull-back and signs that we are resuming the uptrend. With a stop below the Friday candle, the initial target will be 163.00 region. A continuation to 167.50 region is also a possibility. This could be a potentially +2.5R trade.
If however, price continues to the downside with momentum, that would negate my analysis. I will not be interested in going short, instead would wait and watch – perhaps PA in the 153.20 area would provide an opportunity to go long.
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:
Target not achieved yet. I closed out half the position when the pair started reversing and stop is just above break even.