We seem to be printing out a very nice wedge pattern and we seem to be at market structure in this case supporting the market for some time. If we close under the support and breakout the resistente we might be getting a bearish week for the GBP/JPY and the opposite if we break up.
Entire reason may vary from trader, ill post mine when the market decides where...
Flowing the trend but only looking to buy at a pullback to structure which lines up with a 61.8 retracment
We can take this trade 3 ways :
1- Aim for the longer targets
2- Aim for the 1.27 ext
3- Aim for a retest of previous highs.
The logic is quite easy to grasp. Price is clearly in an uptrend following a trend line. We are now on that trend line which coincides previous structure and a 0.38 fib level which seems to have some significance.
We should be aware of long opportunities
I couldent take this trade as i am already exposed in the markets.
Just wanted to show how a kill zone gives you added confidence.
We might get a retracment off the 50% fib level as it coincides with the 200ema
As we can see this pair has been in a range since 2013 (green lines limits of monthly),
On the dailly we see more range movement (red borders).
As price is now at a point historically considered low we expect market to go up.
Price is at a place where historically is considered a turning point. added to that we get confluence with the 76.8% Fib level and the 200 EMA that has acted as a major level for this pair in the past.
I see two possible ways this pair could move in this week.
1st - Long if the double bottom holds and we get a trend continuation to the upside. which i belive is the most probable.
2nd - Short if we get a touch of the base of the trend line and fail to break through.
Any comments ?