GBP/JPY has now bounced off of support in the 138.00 zone on the daily time frame and has clearly broken the recent down trend. We are now looking for a harmonic retracement in the neighborhood of the 61.8 fib. Our long entry kill zone will be between the 50% and the 61.8% fib retracement levels. Price has established a perfect 45 degree uptrend angle (Gann) so we are looking for price to return to the 147.00 - 148.00 price zone where we will be looking to take profit and wait for the next clear setup. Remember that this is just our view of the market conditions for the Pound/Yen pair and you should always trade with caution.
!!!Good Trading All!!!
!!!Good Trading All!!!
Trade active:
We failed to mention that since the momentum of the up move was rather strong then we would also be on the lookout for an early entry long if the right conditions presented themselves. We also should have posted this chart in the H4 time frame so that we could track price action.
Comment:
We just hit the take profit zone on this trade. We will be closing half of our position and manually trailing our stop on the 2nd half to capture any move that breaks out above the previous swing high area around the 148.100. Our hard protective stop will lock in 100 pips of profit on our second half just in case. If we breakout to the upside then we could be looking for a return to the 150.00 area which was the trading area before the 2016 Brexit announcement. If we fail to break this 148.100 zone then look or a breakdown back to the 138.00 - 137.00 areas.
Trade active:
We just hit the take profit zone on this trade. We will be closing half of our position and manually trailing our stop on the 2nd half to capture any move that breaks out above the previous swing high area around the 148.100. Our hard protective stop will lock in 100 pips of profit on our second half just in case. If we breakout to the upside then we could be looking for a return to the 150.00 area which was the trading area before the 2016 Brexit announcement. If we fail to break this 148.100 zone then look or a breakdown back to the 138.00 - 137.00 areas.