In this installment I depict the interesting levels to monitor in the .
We have a weekly downtrend expiring on Friday, this is for this pair since it implies that it's possible to retest the mode from where the 10 week downtrend launched, at 124.221.
If we manage to move above 120.084, and break the successive hurdles above, we might be in for a very good risk to reward long trade. Personally, I will wait to short the top, since I'm already long GBPJPY , and I don't want to go long here since it would be redundant.
If this week closes above the mode, we could look for the targets above for potential reversal zones, or each of the low resistance levels in light blue, or the range expansion resistance zones in gray.
Entry short would demand an ATR stop, 1.5-3 atr in the daily should suffice. Initial target for a short once the rally is done is a retest of the mode below, and if it crosses down, we might get a new 10 week signal from a lower price, which is very , and would materialize next week if we see range expansion down compared to this week's range, or the next week to that if it detaches from the then lower mode, or expands range as well.
I'll keep updating this chart from now on, good luck.
Time at Mode FX