After the completion of a bearish crab pattern, GBPJPY has been consistently making lower lows and lower highs on the 1 hour chart. If it keeps up doing this and retraces back to the next strong looking support level, there are strong risk:reward opportunities in selling bounces of it early in the week if we see them.
Hey guys, I hope you are enjoying your weekend. In the attached charts (Weekly and Daily) you can see that we closed above the 23.6% retracement. We are in a corrective structure and for me the pair can push until the next resistance (highlighted in black), around 147.7, in my chart. Please comment or like if you have any interest. Cheers Jesse
While we looked at a short opportunity in previous posts, none have seen any momentum and the pair continues to trade lower, near the 50% retracement. While it is possible for the pair to retrace to the 62% or lower, we're looking for a base near current levels. Any risk averse news will send the pair below 136. Tight stops when trading against the trend.
3/22 Update: Failed breakout higher led to a reversal as risk-off took control of the markets yesterday. Continuation is very likely in equities today as well as a stronger yen (risk aversion). Entries between 138.60 and 139.00. The trend has been broken so this should lead to some strong selling pressure.
The breakout didn't have much momentum and any longs should have a firm stop between 138.90 if not near the 139.15; if the lows are taken out, then we will look forward to continuation lower. Risk-off today is helping the Yen gain ground. USDJPY looks weak so the long trade is very risky at this point. Neutral.