I was looking for Short opportunity, especially from 195.00 level. The idea behind it, is because of the Bearish divergence on the Daily Stochastic.
I also said “I am simply saying it won’t be today, or tomorrow”. (“it” meaning “reaching to 195.00”)
But the price hit 195.00 yesterday!!!!!! As I expected? No, I didn’t.
The reason for the setup “Sell from 195.00” came from 2 facts –
a) Bearish Divergence on Daily Stochastic
b) GBPJPY was in the range bound of 193.50 – 195.00
“Range Bound” means it should take a certain time to reach from the bottom to the top (and vice versa). Yesterday’s move was too quick, to say a part of Range Bound.
What I want to say here is… I am no longer Bearish with this pair.
I used to say I am “Short term short, Long term long”. But now I am “Short term long, Long term long”.
GBP is really that strong now.
So if you are shorting from 195.00, congratulation. You are making profits now. (as the price has been dropping to 194.70) But please get ready for the next rise of the price.
Here is my new setup.
Let’s just take a fibonacci of the last big rise, and long from FIb38.2% level, which happens to be around 194.50 level. So Buy from 194.50, and take profit at 195.00. Beyond that, we should observe the price breaks 195.00 resistance, and re-Long again from the pullback.
This is the Beast. Let’s treat it with the maximum caution.
YJ Baik – Forex.Today @ Tokyo