Yesterday, GBPJPY jumped up 200 pips.
I am sorry I suggested the opposite direction. (For your record, I shorted twice, and lost twice…)
Well, I will try to polish up my analysis.
Let’s move on dot com.
Today seems to be RISK ON day. I am expecting stronger USD, weaker Yen.
Thus GBPUSD up, and USDJPY up…! Sounds like a good day to buy GBPJPY.
The above is M15 chart, and I took a fibonacci from Yesterday’s LOW to Yesterday’s High. Please notice there is a cluster of Pivot points (WPP, DPP & MPP) around Fib38.2-50%.
So this is the golden buy zone.
However, I have one concern.
As you can see below, 184.35 is the resistance. So if you successfully buy from the BUY ZONE, you may want to consider closing the trade once at 184.35, and see how it goes. You can buy it again once the price breaks it.
Also there is bigger concern. If the price hesitates to make higher high at resistance, and makes lower high, you should be aware of the possibility to drop from the resistance.
I don’t want to be “VERY WRONG” like yesterday. So I should show you more options, so that I cannot be “VERY WRONG” ! 🙂
You have to build your own setup after all, and I hope I have given enough information that you can cook with.
YJ Baik – Forex.Today @ Tokyo
PS: (2:30 AM, EST) I see Bearish Divergence on Hourly chart. The price has formed Double Top, but the Stochastic is down. More possibility to see the price down???